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 29): Bursa Malaysia bucked the regional trend to end the week sharply lower due to broad-based selling, said Rakuten Trade Sdn Bhd equity research vice president Thong Pak Leng.
With the key index falling 1.10%, investors exercised caution due to global inflation concerns, fuelled by elevated crude oil prices and the looming US government shutdown.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 15.94 points to 1,424.17 to mark its intraday low from Wednesday’s close of 1,440.11.
The benchmark index, which opened 3.72 points easier at 1,436.39, hit an intraday high of 1,436.97 in the morning session before succumbing to selling pressure in late trading.
On the broader market, decliners beat gainers 578 to 379 while 438 counters were unchanged, 990 untraded and 98 others suspended.
Turnover increased to 3.03 billion units worth RM2.43 billion from 2.97 billion units worth RM1.94 billion on Wednesday.
Thong said some portfolio realignments and profit-taking activities from local institutions could take place as the market enters the fourth quarter of 2023.
Meanwhile, key regional indices trended mostly higher as bargain hunting emerged following Thursday’s sell-off.
“Back home, today’s heavy selling provides good opportunities to pick up stocks, especially the blue chips. The benchmark index is currently in an oversold position and we expect bargain-hunting activities to emerge next week,” he told Bernama.
At the close, Bursa heavyweight counters Maybank fell nine sen to RM8.79, Public Bank lost eight sen to RM4.06, CIMB decreased 12 sen to RM5.43, Tenaga Nasional slid three sen to RM9.99 while Petronas Chemicals also fell three sen to RM7.19.
Of the actives, Evergreen Max Cash added 7.5 sen to 42.5 sen, KNM rose half-a-sen to 12.5 sen, while Ekovest went down half-a-sen to 55.5 sen.
Sapura Energy was flat at 5.5 sen while Widad was also flat at 51 sen.
On the index board, the FBM Emas Index declined by 80.87 points to 10,582.27, the FBMT 100 Index was 82.34 points easier at 10,244.50 and the FBM Emas Shariah Index went down 47.28 points to 10,874.52.
The FBM ACE Index improved by 16.57 points to 5,175.24 and the FBM 70 Index advanced by 26.02 points to 14,193.27.
Sector-wise, the Plantation Index eased 10.89 points to 6,880.35, the Industrial Products Services Index narrowed by 1.17 points to 171.49 and the Energy Index fell 5.07 points to 893.74.
The Financial Services Index tumbled 205.46 points to 15,918.17.
The Main Market volume stood at 1.83 billion units worth RM2.10 billion from 1.88 billion units worth RM1.66 billion on Wednesday.
Warrant turnover increased to 351.67 million units valued at RM44.33 million against 328.79 million units valued at RM37.32 million previously.
The ACE Market volume improved to 845.43 million shares worth RM280.84 million from 749.08 million shares worth RM241.13 million previously.
Consumer products and services counters accounted for 259.49 million shares traded on the Main Market, industrial products and services (419.39 million); construction (141.96 million); technology (121.78 million); SPAC (nil); financial services (110.20 million); property (233.47 million); plantation (41.95 million); REITs (12.88 million), closed/fund (43,700); energy (261.65 million); healthcare (66.89 million); telecommunications and media (34.81 million); transportation and logistics (60.24 million) and utilities (71.89 million).
Source: The Edge
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