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 8): Bursa Malaysia extended Thursday's losses to end lower on Friday, in line with weaker regional market sentiment, due to growing concerns over the bearish economic outlook, dealers said.
At 5pm, the FBM KLCI had declined 5.12 points to settle at 1,454.59, from 1,460.07 at Thursday’s close.
The barometer index opened 0.53 of a point easier at 1,459.54, and moved between 1,454.70 and 1,460.23 throughout the day.
On the broader market, decliners thumped gainers 503 to 364, with 443 counters unchanged, 1,013 untraded, and seven others suspended.
Turnover decreased to 2.55 billion units worth RM1.85 billion, against Thursday’s 3.21 billion units worth RM2.02 billion.
Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the KLCI finished lower, as investor sentiment was affected by a major selldown in the region.
“Key regional indices trended lower, with strong selling in the Japanese stock market, as Japan's economy grew slower than expected [in the second quarter]. The Hong Kong market was closed, due to a storm warning. Meanwhile, tech stocks in the region continued to tumble, due to deepening US-China tensions,” he told Bernama.
Another dealer said that regional bourses were down, as a drop in Apple shares overnight pulled US stock indices lower on Thursday. News that China would broaden a ban on the use of iPhones helped push the tech giant’s market capitalisation wipeout over the past two sessions to nearly US$200 billion (RM935 billion).
“Wall Street’s benchmark S&P 500 fell 0.3%, and the technology-focused Nasdaq Composite declined 0.9%, extending losses from the previous trading session.
“Apple shares closed 2.9% lower on Thursday, pushing their decline since Tuesday’s closing bell to 6.4% in one of their steepest two-day sell-offs this year,” he said.
Among Bursa heavyweights, Malayan Banking Bhd (Maybank) slipped three sen to RM9.14, Tenaga Nasional Bhd declined one sen to RM9.86, and CIMB Group Holdings Bhd went down five sen to RM5.69, while Public Bank Bhd was unchanged at RM4.25, and Petronas Chemicals Group Bhd was flat at RM7.17.
Of the actives, Classita Holdings Bhd fell one sen to seven sen, and JAKS Resources Bhd shed half a sen to 21 sen, while Ekovest Bhd added 2.5 sen to 53 sen, and Widad Group Bhd advanced one sen to 47.5 sen.
On the index board, the FBM Emas Index erased 47.88 points to 10,726.92, the FBMT 100 Index fell 45.92 points to 10,401.98, the FBM Emas Shariah Index trimmed 62.54 points to 10,887.50, and the FBM 70 Index dropped 101.97 points to 14,135.72, but the FBM ACE Index gained 0.26 of a point to 5,188.83.
Sector-wise, the Financial Services Index gave up 45.52 points to 16,426.68, the Industrial Products and Services Index dipped 0.38 of a point to 172.74, the Energy Index ticked down 9.02 points to 855.47, and the Plantation Index declined 34.80 points to 6,864.15.
The Main Market’s volume shrank to 1.85 billion units worth RM1.66 billion, from 2.30 billion units worth RM1.82 billion on Thursday.
Warrant turnover narrowed to 215.13 million units valued at RM31.01 million, against Thursday’s 344.77 million units valued at RM48.86 million.
The ACE Market volume fell to 474.13 million shares worth RM166.28 million, from 560.47 million shares worth RM159.50 million previously.
Consumer products and services counters accounted for 372.62 million shares traded on the Main Market, along with industrial products and services (335.50 million), construction (167.08 million), technology (167.54 million), special purpose acquisition companies (nil), financial services (47.81 million), property (320.68 million), plantation (33.87 million), real estate investment trusts (8.0 million), closed/funds (4,900), energy (137.0 million), healthcare (70.72 million), telecommunications and media (32.52 million), transportation and logistics (61.03 million), and utilities (92.84 million).
Source: The Edge
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