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 14): Bursa Malaysia recouped earlier losses to close higher on Wednesday (June 14), amid a mixed regional market performance, ahead of the US interest rate decision later in the day.
At 5pm, the FBM KLCI had risen 4.81 points, or 0.35%, to 1,385.42, compared with 1,380.61 at Tuesday’s close.
The key index opened 1.09 points firmer at 1,381.70 on Wednesday morning, and moved between 1,381.49 and 1,386.79 throughout the day.
Market breadth was positive, as gainers beat decliners 444 to 343, while 515 counters were unchanged, 953 untraded, and 13 others suspended.
Turnover decreased to 2.86 billion units worth RM1.75 billion, versus 3.08 billion units worth RM1.97 billion on Tuesday.
Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said investors’ attention was primarily focused on the US Federal Open Market Committee meeting, wherein they anticipated a halt in interest rate hikes after a series of 10 consecutive hikes.
“Additionally, market sentiment was boosted by the easing tension between the US and China, and supportive monetary policy from central banks in China and Japan.
“We maintain our cautiously optimistic view due to the aforementioned reasons. We anticipate the KLCI to trend within the range of 1,380 to 1,395 for the rest of the week,” he told Bernama.
Among the heavyweights, Malayan Banking Bhd (Maybank) at RM8.60 a share and Petronas Chemicals Group Bhd at RM6.40 had dipped two sen each, Public Bank Bhd rose one sen to RM3.82, Tenaga Nasional Bhd improved six sen to RM9.20, while CIMB Group Holdings Bhd was flat at RM4.99.
Of the actives, Sarawak Consolidated Industries Bhd perked up 1.5 sen to 38.5 sen, MyEG Services Bhd ticked up two sen to 86 sen, Bahvest Resources Bhd was 2.5 sen firmer at 26.5 sen, while XOX Bhd at 1.5 sen and Classita Holdings Bhd at 10.5 sen were both flat.
On the index board, the FBM Emas Index rose 47.25 points to 10,244.25, the FBMT 100 Index increased 46.39 points to 9,939.16, and the FBM Emas Shariah Index put on 79.66 points to 10,617.27.
The FBM ACE Index climbed 52.47 points to 5,199.00, and the FBM 70 Index surged 112.63 points to 13,650.30.
Sector-wise, the Industrial Products and Services Index edged up 1.32 points to 160.07, the Plantation Index slipped 11.13 points to 6,707.11, the Financial Services Index declined 15.25 points to 15,184.14, while the Energy Index added 6.77 points to 787.43.
The Main Market volume slid to 1.83 billion units valued at RM1.51 billion, from 1.95 billion units valued at RM1.68 billion on Tuesday.
Warrant turnover declined to 279.54 million units worth RM44.73 million, against 377.22 million units worth RM56.52 million previously.
The ACE Market volume narrowed to 746.61 million shares valued at RM201.37 million, from 750.12 million shares valued at RM227.64 million on Tuesday.
Consumer products and services counters accounted for 313.19 million shares traded on the Main Market, followed by industrial products and services (627.58 million), construction (68.83 million), technology (283.48 million), special purpose acquisition companies (nil), financial services (60.68 million), property (163.60 million), plantation (33.01 million), real estate investment trusts (7.13 million), closed/funds (128,000), energy (84.24 million), healthcare (38.63 million), telecommunications and media (39.87 million), transportation and logistics (69.80 million), and utilities (43.33 million).
Source: The Edge
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