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 25): Bursa Malaysia closed higher on Wednesday on the back of bargain-hunting activities with more than two-thirds of the key index components advancing, driven by the calmer market conditions on Wall Street overnight, a dealer said.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) gained 6.86 points to 1,442.51 from Tuesday’s closing of 1,435.65.
The index, which opened 2.32 points higher at 1,437.97, moved between 1,437.82 and 1,444.53 throughout the day.
Likewise, on the broader market, gainers beat decliners 447 to 360, while 459 counters were unchanged, 1,102 untraded and 20 suspended.
Turnover decreased to 2.83 billion units worth RM1.78 billion from 2.93 billion units worth RM1.94 billion on Tuesday.
Apex Securities Bhd head of research Kenneth Leong said the improvement was also driven by China's government proposal to issue sovereign bonds worth one trillion yuan (RM646.59 billion) in an attempt to shore up its economy.
"Looking ahead, we expect the FBM KLCI to build onto the previous session’s gains amid the calmer market conditions with investors nibbling into the beaten down stocks.
"Investors would also be keeping a close tab on the release of Malaysia's Producer Price Index data tomorrow ([Oct 26]," he said.
Meanwhile, Rakuten Trade Sdn Bhd equity research vice president Thong Pak Leng anticipates that China's stimulus plan will have a positive spillover effect, benefiting regional markets, including Malaysia.
"Therefore, we anticipate the FBM KLCI to trend within the range of 1,435 to 1,450 for the remainder of the week," he said.
Bursa heavyweights Maybank Bhd gained four sen to RM9, Public Bank Bhd added two sen to RM4.16, CIMB Group Holdings Bhd climbed one sen to RM5.69, Petronas Chemicals Group Bhd added 10 sen to RM7.25 and Tenaga Nasional Bhd was three sen higher at RM9.88.
Of the actives, Widad Group Bhd widened 4.5 sen to 47.5 sen, Leform Bhd bagged one sen to 24 sen, Sarawak Consolidated Industries Bhd expanded half a sen to 54.5 sen, while Kanger International Bhd and MQ Technology Bhd were unchanged at 12.5 sen and 2.5 sen respectively.
On the index board, the FBM Emas Index was 46.99 points better at 10,638.32, the FBMT 100 Index firmer 46.11 points to 10,313.96 and the FBM Emas Shariah Index expanded 45.22 points to 10,863.48.
The FBM 70 Index perked 50.03 points to 14,018.46 and the FBM ACE Index climbed 20.17 points to 5,067.48.
Sector-wise, the Industrial Products and Services Index was 1.27 points higher at 172.38, the Financial Services Index went up 55.06 points to 16,236.18 and the Plantation Index expanded 25.34 points to 6,882.58.
However, the Energy Index was 1.82 points down to 872.03.
The Main Market volume was weaker at 1.55 billion units worth RM1.46 billion compared with 1.83 billion units worth RM1.66 billion on Tuesday.
Warrants turnover advanced to 400.99 million units valued at RM52.67 million against 322.59 million units valued at RM39.82 million on Tuesday.
The ACE Market volume increased to 867.82 million shares worth RM257.89 million from 766.74 million shares worth RM235.04 million previously.
Consumer products and services counters accounted for 293.98 million shares traded on the Main Market, industrial products and services (371.84 million); construction (134.52 million); technology (209.5 million); SPAC (nil); financial services (48.71 million); property (197.08 million); plantation (22.85 million); REITs (9.93 million), closed/fund (44,700); energy (95.23 million); healthcare (43.04 million); telecommunications and media (23.36 million); transportation and logistics (46.36 million); and utilities (61.34 million).
Source: The Edge
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