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 22): Bursa Malaysia extended gains for the third consecutive day on Thursday (June 22) with the key index putting on 0.09%, supported by bargain hunting in selected heavyweights led by financial services and telecommunications stocks, dealers said.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most of its earlier gains to close at 1,394.67, up 1.22 points, from 1,393.45 at Wednesday’s close.
The market bellwether opened 1.33 points lower at 1,392.12 on Thursday morning and moved between 1,391.76 and 1,402.44 throughout the session.
However, the broader market was negative as decliners surpassed gainers 452 to 334, while 422 counters were unchanged, 1,086 untraded and 19 others suspended.
Turnover decreased to 2.16 billion units worth RM1.59 billion versus 3.06 billion units worth RM1.80 billion on Wednesday.
Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the FBM KLCI closed marginally higher on continued bargain hunting, given the undemanding valuations.
"On the local front, we are cautiously optimistic amid the improvement in the local market sentiment and strong support from local institutional funds.
"Nonetheless, investors should be wary of the increasing volatility in both regional and global equity markets. We anticipate the FBM KLCI to test the 1,400 psychological level towards the weekend," he told Bernama.
Meanwhile, the key regional indices ended mostly lower following the negative performance of global equities overnight following hawkish testimony by US Federal Reserve chair Jerome Powell to Congress on Wednesday.
"Powell reaffirmed that more interest rate increases are likely ahead until further progress is seen in bringing down inflation, and this weighed on market sentiment," he told Bernama.
"Additionally, according to the June Global Economic Outlook by Fitch Ratings, the global growth forecast for the upcoming year has worsened due to the anticipated hike in interest rates across various regions worldwide," he shared.
Regionally, Japan’s Nikkei 225 slipped 0.92% to 33,264.88, Singapore's Straits Times Index eased 0.05% to 3,222.02, while South Korea’s Kospi rose 0.43% to 2,593.70.
The markets were closed in Hong Kong and Shanghai for the Dragon Boat Festival, a national holiday.
On the local bourse, heavyweights Malayan Banking Bhd added one sen to RM8.75, Public Bank Bhd gained one sen to RM3.92 and Tenaga Nasional Bhd rose one sen to RM9.20, IHH Healthcare Bhd advanced five sen to RM5.91, while CIMB Group Holdings Bhd eased one sen at RM5.24.
Of the actives, Tanco Holdings Bhd's warrant edged up 1.5 sen to 21.5 sen, Widad Group Bhd eased half-a-sen to 42 sen, Bumi Armada Bhd shed one sen to 47.5 sen, Sarawak Consolidated Industries Bhd slid two sen to 42.5 sen, while VS Industry Bhd's warrant was flat at 3.5 sen.
On the index board, the FBM Emas Index was 0.64 of-a-point better at 10,251.10, the FBMT 100 Index added 1.63 points to 9,953.09 and the FBM ACE Index garnered 22.46 points to 5,110.48.
The FBM Emas Shariah Index eased 0.72 of-a-point to 10,515.68 and the FBM 70 Index dipped 27.66 points to 13,450.22.
Sector-wise, the Financial Services Index rose 53.23 points to 15,525.52, the Energy Index perked up 4.65 points to 788.54, the Industrial Products and Services Index slid 0.40 of-a-point to 158.89, and the Plantation Index declined 31.51 points to 6,692.86.
The Main Market volume shrank to 1.56 billion units valued at RM1.38 billion from 2.15 billion units worth RM1.55 billion on Wednesday.
Warrants turnover tumbled to 86.18 million units worth RM7.30 million against 395.97 million units worth RM50.68 million previously.
The ACE Market volume increased to 512.18 million shares valued at RM202.06 million from 509.32 million shares worth RM202.59 million.
Consumer products and services counters accounted for 296.99 million shares traded on the Main Market, industrial products and services (406.73 million), construction (40.96 million), technology (93.83 million), SPAC (nil), financial services (83.57 million), property (240.78 million), plantation (30.99 million), REITs (8.69 million), closed/fund (39,000), energy (186.20 million), healthcare (71.06 million), telecommunications and media (27.53 million), transportation and logistics (33.65 million), and utilities (35.16 million).
Source: The Edge
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