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: Bursa Malaysia closed slightly lower amid mixed regional market sentiments as investors awaited the US inflation data, said an analyst.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 1.65 points to 1,453.39 from 1,455.04 at Monday's close.
After opening 0.75 of a point lower at 1,454.29, the barometer index moved between 1,447.96 and 1,454.32 throughout the session.
On the broader market, decliners thumped gainers by 524 to 354, with 450 counters unchanged and 994 untraded.
However, turnover was marginally higher at 2.88 billion units worth RM1.99 billion against Monday’s 2.8 billion units worth RM1.64 billion.
Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said key regional indices closed mixed ahead of the US consumer price index data which could influence the US Federal Reserve's (Fed) decision to raise the interest rates further.
The US Treasury Secretary Janet Yellen reportedly said she was “feeling very good" about the chance the US would avoid a recession while still reining in consumer price increases, a key factor in the Fed debate.
On the other hand, Thong said China's consumer prices reverted to positive figures in August, signalling a possible reduction in deflationary pressures amid growing economic stability.
“As for the local bourse, it is advisable for investors to adopt a vigilant posture due to the growing global volatility and uncertainties.
“At present, the benchmark index's valuations are currently inexpensive, hence, we believe bargain hunting may prevail,” he said.
Barring unforeseen circumstances, Thong anticipates the KLCI to trend within the range of 1,445-1,465 for the week with immediate resistance at 1,465, and support at 1,440.
Bursa heavyweight counters Maybank Bhd edged down by two sen to RM9.14, Petronas Chemicals Group Bhd fell 23 sen to RM7 and Tenaga Nasional Bhd shed five sen to RM9.84, while Public Bank Bhd and AMMB Holdings Bhd were flat at RM4.24 and RM3.68 respectively.
Of the actives, Ekovest Bhd gained one sen to 53 sen, IFCA MSC Bhd added two sen to 33 sen, UEM Sunrise Bhd slid two sen to 68.5 sen and YTL Corp Bhd shed five sen to RM1.43.
On the index board, the FBMT 100 Index was 22.27 points easier at 10,380.37, the FBM 70 Index shed 74.60 points to 14,062.15, the FBM Emas Index was 23.73 points weaker at 10,700.1 and the FBM Emas Shariah Index slipped 23.16 points to 10,860.97.
Meanwhile, the FBM ACE Index improved 4.88 points to 5,165.95.
Sector-wise, the Financial Services Index reduced 5.70 points to 16,436.92 and the Industrial Products and Services Index was lower by 1.95 points at 170.73.
Meanwhile, the Energy Index was 4.33 points better at 855.70 and the Plantation Index increased 26.34 points to 6,884.28.
Source: The Edge
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