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 23): Bursa Malaysia snapped three straight days of gains to end the week on a weaker note amid a worldwide selloff on worries over the global economic outlook.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 3.78 points, or 0.27%, to 1,390.89 from 1,394.67 at Thursday’s close.
The key index opened 1.03 points better at 1,395.70 on Friday morning and moved between 1,389.70 and 1,397.54 throughout the session.
The broader market was also negative as decliners outpaced gainers 518 to 353, while 401 counters were unchanged, 1,046 untraded, and 19 others suspended.
Turnover surged to 4.90 billion units worth RM1.63 billion versus 2.16 billion units worth RM1.59 billion on Thursday.
Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said Malaysian equities closed broadly lower, in tandem with the negative performance in the region after US and European markets fell overnight.
"The unexpectedly large interest rate hike from the Bank of England (BOE) overnight plus the hawkish testimony by the US Federal Reserve (Fed) chairman Jerome Powell before the US Congress that the Fed could raise rates at least two more times this year dented market sentiment.
"Investors have become increasingly wary over recession risks and the health of the global economy.
“Meanwhile, Japanese consumer inflation which exceeded expectations had also exacerbated the market volatility," he told Bernama.
The BOE on Thursday surprised markets with a 50-basis-point hike in interest rates.
Regionally, Japan’s Nikkei 225 slipped 1.45% to 32,781.54, Hong Kong's Hang Seng Index fell 1.71% to 18,889.97 and Singapore's Straits Times Index lost 0.97% to 3,191.17. South Korea’s Kospi shed 0.91% to 2,570.10.
On the local bourse, heavyweight stocks Malayan Banking Bhd eased one sen to RM8.74, Public Bank Bhd slipped four sen to RM3.88 and CIMB Group Holdings Bhd shed three sen to RM5.21. IHH Healthcare Bhd fell six sen to RM5.86 while Tenaga Nasional Bhd was flat at RM9.20.
Of the actives, both EA Holdings Bhd and Fintec Global Bhd slid half-a-sen to half-a-sen, while Bahvest Resources Bhd declined 8.5 sen to 16.5 sen and Wegmans Holdings Bhd's warrant reduced one sen to one sen. Sarawak Consolidated Industries Bhd was flat at 42.5 sen.
On the index board, the FBM Emas Index dipped 18.92 points to 10,232.18, the FBMT 100 Index trimmed 19.37 points to 9,933.72 and the FBM ACE Index fell 67.61 points to 5,042.87.
The FBM Emas Shariah Index edged up 0.07 of a point to 10,515.75 and the FBM 70 Index added 5.97 points to 13,456.19.
Sector-wise, the Financial Services Index declined by 80.67 points to 15,444.85, the Energy Index slid by 3.46 points to 785.08 and the Industrial Products and Services Index edged down 0.02 of-a-point to 158.87.
The Plantation Index improved by 25.58 points to 6,718.44.
The Main Market volume expanded to 1.64 billion units valued at RM1.33 billion from 1.56 billion units worth RM1.38 billion on Thursday.
Warrant turnover surged to 345.94 million units worth RM39.24 million against 86.18 million units worth RM7.30 million previously.
The ACE Market volume jumped to 2.92 billion shares valued at RM259.96 million from 512.18 million shares worth RM202.06 million.
Consumer products and services counters accounted for 430.33 million shares traded on the Main Market, industrial products and services (457.65 million), construction (74.33 million), technology (107.30 million), SPAC (nil), financial services (57.24 million), property (166.44 million), plantation (28.74 million), REITs (9.70 million), closed/fund (82,000), energy (141.18 million), healthcare (69.51 million), telecommunications and media (35.70 million), transportation and logistics (22.58 million), and utilities (38.64 million).
Source: The Edge
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