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 16): Bursa Malaysia closed broadly lower on Monday, in tandem with the weaker performance in regional bourses as cautious sentiment following geopolitical tensions in the Middle East weighed on investors risk appetite.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 5.18 points to 1,438.96 from Friday’s (Oct 13) close of 1,444.14.
The key index, which opened 1.22 points better at 1,445.36, moved between 1,436.5 and 1,446.12 throughout the day.
Market breadth was negative with decliners thumping advancers 597 to 284, while 451 counters were unchanged, 1,022 untraded and 24 others suspended.
Turnover decreased to 3.09 billion units worth RM1.92 billion from 3.22 billion units worth RM1.8 billion on Friday.
Rakuten Trade Sdn Bhd equity research vice president Thong Pak Leng said the local market was subdued as selling pressure mounts across the region as escalated conflicts in the Middle East continue to hurt investor sentiment.
He said the ongoing conflict sent shockwaves through the oil markets, intensifying the existing uncertainties that were already looming over the US interest hike and global economic outlook.
“As for the local stock market, sentiment may be cautious, given the increasing market risks and volatility in the global markets.
“Nevertheless, we believe the valuations of the FBM KLCI remain attractive and hold potential for investors,” he told Bernama.
Thong said, considering the trading pattern of the benchmark index, it is likely to enter a consolidation phase until fresh catalysts emerge.
Consequently, the KLCI is expected to trade within the 1,430 and 1,450 range for the week, with immediate support at 1,430 and resistance at 1,460, he added.
Similarly, the key regional markets were also in negative territory due to the same factors.
Singapore's Straits Times Index declined 0.69% to 3,163.89, Japan’s Nikkei 225 dropped 2.03% to 31,659.03, and Hong Kong’s Hang Seng Index fell 0.97% to 17,640.36, while China’s SSE Composite dipped 0.46% to 3,073.81.
Among the heavyweights, CIMB Group Holdings Bhd shed five sen to RM5.61, Tenaga Nasional Bhd lost seven sen to RM9.95, IHH Healthcare Bhd slipped one sen to RM5.95, while both Maybank Bhd and Public Bank Bhd were flat at RM8.98 and RM4.17 respectively.
Of the actives, Classita Holdings Bhd slipped a sen to six sen, Asdion Bhd bagged three sen to six sen, Compugates Holdings Bhd inched up half a sen to 1.5 sen, while Widad Group Bhd, KNM Group Bhd and Sarawak Consolidated Industries Bhd were flat at 55 sen, 11.5 sen and 51 sen respectively.
On the index board, the FBM Emas Index decreased 35.88 points to 10,659.06, the FBMT 100 Index dipped 32.29 points to 10,324.59, the FBM 70 Index slid 23.15 points to 14,190.26, the FBM ACE Index fell 27.76 points to 5,117.19, while the FBM Emas Shariah Index erased 46.8 points to 10,878.67.
Sector-wise, the Industrial Products Services Index added 0.9 of a point to 175.34, the Energy Index was 5.1 points higher at 882.46, while the Plantation Index lost 36.57 points to 6,826.16, and the Financial Services Index slipped 36.25 points to 16,227.93.
The Main Market volume increased to 1.98 billion units worth RM1.73 billion from 1.94 billion units worth RM1.55 billion on Friday.
Warrants turnover declined to 332.86 million units valued at RM41.44 million against 371.45 million units valued at RM49.13 million.
The ACE Market volume dwindled to 755.45 million shares worth RM213 million from 895.89 million shares worth RM195.28 million previously.
Consumer products and services counters accounted for 476.84 million shares traded on the Main Market, industrial products and services (408.49 million); construction (209.39 million); technology (104.6 million); SPAC (nil); financial services (74.88 million); property (273.65 million); plantation (39.56 million); REITs (8.86 million), closed/fund (2,000); energy (215.05 million); healthcare (52.07 million); telecommunications and media (33.64 million); transportation and logistics (46.97 million); and utilities (31.89 million).
Source: The Edge
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