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 (Oct 10): Bursa Malaysia closed on a positive note on Tuesday, buoyed by buying activities and improved regional markets’ performance, a dealer said.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 17.91 points to 1,435.17 from Monday’s closing of 1,417.26.
The index, which opened 2.07 points higher at 1,419.33, moved between 1,419.33 and 1,435.89 during the day.
On the broader market, gainers outpaced decliners 585 to 332, while 450 counters were unchanged, 959 untraded and nine others suspended.
Turnover increased to 3.39 billion units worth RM2.02 billion from 2.88 billion units worth RM1.78 billion on Monday.
Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said key regional indices trended mostly higher, taking their cue from Wall Street's optimism after the US Federal Reserve (Fed) officials minimised the chances of a rate hike for the rest of the year, despite the recent uptick in treasury yields.
“The benchmark index finished sharply higher, in line with the strong regional performance, and we believe that foreign funds are returning to the region.
“Nonetheless, considering the escalating geopolitical tensions in Israel, we recommend investors to remain vigilant as this could lead to an increase in crude oil prices, potentially causing a spike in inflation and rate hike,” he said.
Consequently, he anticipates the KLCI will continue to trade within 1,430-1,440 for the rest of the week, with the next resistance level at 1,460 and support at 1,415.
Meanwhile, SPI Asset Management managing partner Stephen Innes said the KLCI had a good day on Tuesday as investors sense the Fed will pause the November rate hikes, as higher US yields and tighter bank lending conditions will help the Fed tame inflation, hence there is no need for a rate hike.
“Locally, investors may sense some policy redistribution in the upcoming budget as the government cuts subsidy for the wealthy and provide cash handouts for the poor, which should be good for the economy.
At the close, heavyweights Maybank Bhd increased nine sen to RM8.89, Public Bank Bhd rose 10 sen to RM4.13, CIMB Group Holdings Bhd added 13 sen to RM5.55, Petronas Chemicals Group Bhd edged up 13 sen to RM7.30 and Tenaga Nasional Bhd was flat at RM9.97.
Of the actives, Classita Holdings Bhd inched up 1.5 sen to eight sen, UEM Sunrise Bhd perked 6.5 sen to 87 sen, NETX Holdings Bhd recovered 2.5 sen to 19 sen and Sarawak Consolidated Industries Bhd firmed one sen to 49.5 sen, while KNM Group Bhd slid 2.5 sen to 12 sen.
On the index board, the FBM Emas Index soared 120.04 points to 10,629.28, the FBMT 100 Index widened by 116.31 points to 10,294.54, the FBM Emas Shariah Index leapt 95.84 points to 10,887.32, the FBM 70 Index went up 106.79 points to 14,136.54 and the FBM ACE Index accumulated 66.00 points to 5,193.51.
Sector-wise, the Plantation Index recovered 48.93 points to 6,898.78, the Financial Services Index jumped 222.84 points to 16,109.68, the Energy Index edged up 7.19 points to 874.86 and the Industrial Products Services Index was better by 2.20 points to 172.83.
The Main Market volume increased to 2.34 billion units worth RM1.77 billion from 1.91 billion units worth RM1.51 billion on Monday.
Warrant turnover widened to 363.63 million units valued at RM52.36 million against 240.3 million units valued at RM30.70 million on Monday.
The ACE Market volume slid to 674.16 million shares worth RM197.00 million from 720.16 million shares worth RM237.92 million previously.
Consumer products and services counters accounted for 491.34 million shares traded on the Main Market, industrial products and services (339.08 million); construction (165.14 million); technology (106.88 million); SPAC (nil); financial services (73.70 million); property (364.62 million); plantation (44.82 million); REITs (10.18 million), closed/fund (53,500); energy (530.09 million); healthcare (73.15 million); telecommunications and media (24.29 million); transportation and logistics (45.00 million) and utilities (71.67 million).
Source: The Edge
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