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 (Sept 13): Bursa Malaysia’s barometer index unexpectedly made a positive ending with slight gains despite cautious trading throughout the day.
Investors, meanwhile, await the release of US inflation data later which could influence the Federal Reserve’s (Fed) policy outlook.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) improved by 0.15 of a point to end at its intraday high of 1,453.54.
The index opened 6.36 points lower at 1,444.81 from 1,453.39 at Tuesday’s close.
Market breadth was mixed, with 480 decliners outnumbering 405 gainers, while 440 counters were unchanged and 1,009 untraded.
Turnover was lower at 2.51 billion units worth RM1.88 billion against Tuesday’s 2.88 billion units worth RM1.99 billion.
Investors are showing interest in undervalued stocks in the oil and gas industry due to a rise in oil prices, which have reached a nearly 10-month high due to supply constraints.
This trend is also observed in other industries such as plantations, healthcare, energy, technology, and construction.
Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said most investors continued to exhibit a wait-and-see attitude ahead of the US consumer price index (CPI) data on Wednesday night.
On top of that, there are concerns about China’s slower-than-expected stimulus plan rollout.
“The local market remains cautious for the short term, due to fears of a US rate hike, while needing some catalysts to move upwards.
“Investors are hoping the US will not increase their interest rate. If this materialises, we expect the market to turn positive,” he said.
It was widely expected that the Fed would leave the rate unchanged at the September meeting with a chance of a hike in November.
“Hence, we expect the FBM KLCI to remain in consolidation mode for the time being unless there are new catalysts to drive a change,” he said.
Bursa heavyweights Petronas Chemicals Group Bhd jumped 22 sen to RM7.22, Tenaga Nasional Bhd was 11 sen higher at RM9.95, Sime Darby Plantations Bhd added five sen to RM4.36 and Maybank Bhd eased two sen to RM9.12.
Of the actives, Capital A Bhd went up eight sen to 97 sen, Berjaya Land Bhd added 2.5 sen to 29.5 sen and Bumi Armada Bhd improved by 1.5 sen to 53.5 sen.
On the index board, the FBMT 100 Index was 5.46 points better at 10,385.83, the FBM Emas Index was 5.91 points higher at 10,706.01, the FBM Emas Shariah Index rose 56.36 points to 10,917.33 and the FBM 70 Index increased 26.2 points to 14,088.35.
The FBM ACE Index fell 21.65 points to 5,144.3
Sector-wise, the Financial Services Index fell 105.98 points to 16,330.94, while the Energy Index added 24.71 points to 880.41, the Plantation Index edged up 44.63 points to 6,928.91 and the Industrial Products and Services Index was higher by 1.44 points to 172.17.
Source: The Edge
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