The Bank of Russia unexpectedly maintained its key interest rate at a record-high 21% , defying analysts’ expectations of another significant hike as inflation remains stubbornly elevated. The decision marks a shift toward a more measured approach in balancing economic growth and price stability. Key Details Inflation Concerns: Annual inflation climbed to 8.9% in November, well above the central bank’s 4% target , with inflation expectations reaching 13.9% in December. Policy Rationale: The central bank cited the significant tightening of monetary conditions after October’s 200-basis point hike as sufficient to resume disinflationary processes. Governor Elvira Nabiullina emphasized avoiding both economic overheating and severe slowdowns. Economic Overheating: Elevated government spending on the war in Ukraine and social programs, coupled with labor shortages and rising wages, have fueled strong domestic demand, exacerbating price pressures...
KUALA LUMPUR (June 30): Bursa Malaysia gave up modest gains earlier to close broadly lower on Friday (June 30) on persistent selling in selected heavyweights led by telecommunications and media as well as financial services counters.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) slipped 11.69 points, or 0.84%, to 1,376.68 from 1,388.37 at Wednesday’s close.
The key index opened 0.15 of a point firmer at 1,388.52 on Friday morning and moved between 1,370.15 and 1,391.48 throughout the session.
The
broader market was also negative as losers thumped gainers 506 to 348,
while 393 counters were unchanged, 1,077 untraded and 96 others
suspended.
Turnover narrowed to 2.65 billion units worth RM2.03 billion versus 2.82 billion units worth RM1.49 billion on Wednesday.
Malacca Securities Sdn Bhd senior analyst Kenneth Leong said the FBM KLCI retreated following the mid-year fund rebalancing by institutional funds on Friday.
"With the selling pressure in financial services heavyweights, the key index sank to close at a three-week low.
"Technically, if the 1,370 support is unable to hold, further pullback may be envisaged towards 1,350. Immediate resistance is spotted at 1,400-1,412," he told Bernama.
Meanwhile, Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the market bellwether closed sharply lower and became the worst performer in the region, attributed to huge selling towards the end of the trading session.
"The key regional indices ended mixed as investors are cautious in view that the US Federal Reserve may keep interest rates higher for longer than anticipated," he said.
In the meantime, China’s June 2023 headline manufacturing purchasing managers' index (PMI) of 49.0 came in above market forecast of 48.8, while the non-manufacturing PMI rose to 53.2, which was higher than the 50.2 as forecast.
In Japan, Tokyo's core consumer price index in June was at 3.1% versus forecast of 3.8%, and remained at levels above the central bank’s target for 13 straight months.
Of the heavyweight stocks, Malayan Banking Bhd lost 10 sen to RM8.63, Public Bank Bhd eased two sen to RM3.85, CIMB Group Holdings Bhd went down nine sen to RM5.06, while Tenaga Nasional Bhd increased four sen to RM9.05 and IHH Healthcare Bhd gained two sen to RM5.89.
Of the actives, TWL Holdings Bhd slid half-a-sen to three sen and MyEG Services Bhd dipped half-a-sen to 75 sen, Classita Holdings Bhd edged down one sen to 8.5 sen, Sarawak Consolidated Industries Bhd rose two sen to 47 sen, while Widad Group Bhd was flat at 42 sen.
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