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 7): Bursa Malaysia was lower on Wednesday (June 7), but closed off its intraday low, dragged down by extended selling pressure from the outflow of foreign funds, said an analyst.
At 5pm, the FBM KLCI had fallen 4.52 points or 0.33% to 1,378.65, from 1,383.17 at Tuesday’s close.
The key index opened 1.17 points easier at 1,382.00 on Wednesday morning, and moved between an intraday low of 1,371.74 and high of 1,383.55 throughout the day.
Market
breadth was negative, as decliners led gainers by 495 to 378, while 401
counters were unchanged, 970 untraded, and 13 others suspended.
Turnover shrank to 3.12 billion units worth RM1.73 billion, versus 3.55 billion units worth RM1.92 billion on Tuesday.
Malacca Securities Sdn Bhd senior analyst Kenneth Leong said the sluggish trade data from China also contributed to the weakness in the local bourse.
"As such, we expect the negative momentum to persist, in view of the absence of fresh leads. Any recovery may attract quick profit-taking over the near term," he told Bernama.
Leong added that investors were keeping an eye on Malaysia's unemployment rate and industrial production data to be released tentatively on Friday, as well as the upcoming US Federal Reserve interest rate decision next week.
Meanwhile, Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng opined that the KLCI’s slide was mainly due to a lack of buying interest ahead of the election in six states, as investors were taking a wait-and-see approach.
"We reckon that the short-term direction of the KLCI will depend largely on the stability of the local political landscape and other external factors," he said.
Thong anticipates the benchmark index to trend sideways within the range of 1,375-1,385 for the remainder of the week, with immediate support at 1,373 and resistance at 1,390.
Among the heavyweights, CIMB Group Holdings Bhd added two sen to RM4.90 a share, Tenaga Nasional Bhd eased three sen to RM9.27 and Petronas Chemicals Group Bhd slipped 11 sen to RM6.41, while Malayan Banking Bhd (Maybank) at RM8.58 and Public Bank Bhd at RM3.81 were both flat.
Of the actives, Borneo Oil Bhd was flat at 1.5 sen, Bumi Armada Bhd at 45.5 sen and Tanco Holdings Bhd at 49 sen had shed three sen each, ACE Market debutant Edelteq Holdings Bhd gained 49 sen to 73 sen, and Sarawak Consolidated Industries Bhd rose one sen to 27.5 sen.
On the index board, the FBM Emas Index shaved off 34.82 points to 10,161.97, the FBMT 100 Index declined 33.09 points to 9,862.23, the FBM Emas Shariah Index gave up 51.50 points to 10,529.73, the FBM 70 Index slid 48.25 points to 13,427.77, and FBM ACE Index decreased 13.71 points to 5,025.70.
Sector-wise, the Energy Index shed 7.21 points to 783.22, the Plantation Index trimmed 49.39 points to 6,662.04, and the Industrial Products and Services Index eased 0.89 of a point to 158.89.
However, the Financial Services Index improved 1.03 points to 15,092.82.
The Main Market volume slipped to 2.00 billion units valued at RM1.43 billion, from 2.39 billion units valued at RM1.66 billion on Tuesday.
Warrant turnover tumbled to 372.23 million units worth RM49.66 million, against 423.12 million units worth RM59.84 million previously.
The ACE Market volume expanded to 744.47 million shares valued at RM248.68 million, from 734.62 million shares valued at RM203.45 million a day earlier.
Consumer products and services counters accounted for 357.98 million shares traded on the Main Market, followed by industrial products and services (597.16 million), construction (144.41 million), technology (179.66 million), special purpose acquisition companies (nil), financial services (58.58 million), property (204.57 million), plantation (23.19 million), real estate investment trusts (6.34 million), closed/funds (50,000), energy (224.10 million), healthcare (50.32 million), telecommunications and media (76.62 million), transportation and logistics (27.17 million), and utilities (54.35 million).
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