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 4): Bursa Malaysia ended trading in the red on Wednesday, taking a cue from the unabated volatility on Wall Street overnight, with its key index down by 0.29%, said a dealer.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) trimmed 4.17 points to 1,415.84 from Tuesday’s closing of 1,420.01.
The index, which opened 2.1 points weaker at 1,417.91, moved between 1,412.70 and 1,419.66 during the session.
On the broader market, decliners trounced gainers 730 to 255, while 395 counters were unchanged, 914 untraded and 24 others suspended.
Turnover decreased to 3.02 billion units worth RM2.23 billion from 3.22 billion units worth RM2.2 billion on Tuesday.
Apex Securities Bhd head of research Kenneth Leong said the weakness was also dragged by the recent batch of solid economic data that could reinforce the hawkish tone of the US Federal Reserve to keep interest rates higher for longer.
Looking ahead, he expects downward pressure to be sustained on the back of the absence of fresh catalyst on the domestic front.
“For now, investors will continue to adopt the wait-and-see approach ahead of the Budget 2024 tabling next week,” he said.
Meanwhile, Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng anticipates that near-term market sentiment may stay turbulent, given the uncertainties surrounding regional and global performance.
“Nonetheless, pressure on local and regional stocks is expected to persist as interest rates and bond yields climb.
“As such, we anticipate the FBM KLCI to trend within the 1,410 to 1,425 range with immediate support at 1,415, and resistance at 1,430,” he noted.
At the close, heavyweight counters Maybank Bhd shed four sen to RM8.73, Public Bank Bhd, Tenaga Nasional Bhd and CIMB Group Holdings Bhd eased one sen to RM4.05, RM9.96 and RM5.40, respectively, while Petronas Chemicals Group Bhd added 10 sen to RM7.10.
Of the actives, KNM Group Bhd and UEM Sunrise Bhd rose 1.5 sen to 16.5 sen and 82 sen, respectively, Sealink International Bhd gained 3.5 sen to 22.5 sen, while Evergreen Max Cash Capital Bhd and Ekovest Bhd inched up by half a sen to 46 sen and 53.5 sen, respectively.
On the index board, the FBM Emas Index decreased by 41.53 points to 10,493.84, the FBMT 100 Index was 37.2 points weaker at 10,164.76 and the FBM Emas Shariah Index added 41.42 points to 10,782.08.
The FBM 70 Index was reduced by 83.06 points to 13,996.69 and the FBM ACE Index was lower by 41.83 points to 5,120.42.
Sector-wise, the Plantation Index dragged down by 34.09 points to 6,825.83, the Financial Services Index narrowed by 73.09 points to 15,832.13 and the Energy Index inched down 13.67 points to 858.05.
However, the Industrial Products Services Index improved by 0.03 of a point to 170.11.
The Main Market volume decreased to 1.92 billion units worth RM1.96 billion from 2.01 billion units worth RM1.9 billion on Tuesday.
Warrant turnover dropped to 318.23 million units valued at RM41.74 million against 449.01 million units valued at RM50.37 million previously.
The ACE Market volume expanded to 785.42 million shares worth RM231.29 million from 762.92 million shares worth RM253.65 million previously.
Consumer products and services counters accounted for 240.19 million shares traded on the Main Market, industrial products and services (400.27 million); construction (139.2 million); technology (111.08 million); SPAC (nil); financial services (95.42 million); property (317.24 million); plantation (25.04 million); REITs (10.01 million), closed/fund (93,400); energy (299.61 million); healthcare (54.73 million); telecommunications and media (46.48 million); transportation and logistics (99.01 million) and utilities (83.18 million).
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