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 26): Bursa Malaysia ended mixed on Thursday as the US 10-year yield rebounded to 4.95%, causing a sell-off in global equity markets despite Malaysia's positive producer price index (PPI) data, a dealer said.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.91 points to 1,440.6 from Wednesday’s closing of 1,442.51
The index, which opened 0.52 of a point higher at 1,443.03, moved between 1,438.8 and 1,445.14 throughout the day.
However, on the broader market, gainers beat decliners 436 to 402, while 448 counters were unchanged, 1,088 untraded and 17 suspended.
Turnover expanded to 3.23 billion units worth RM1.98 billion from 2.83 billion units worth RM1.78 billion on Wednesday.
Apex Securities Bhd head of research Kenneth Leong said the weakness was also due to concern over a higher interest rate environment that dominated sentiment.
"Going forward, we expect the downside to persist, owing to the volatility across global markets, un-easing geopolitical tensions, rising bond yields and the mixed bag of corporate earnings from Wall Street,” he said.
He noted that investors would be monitoring the US consumer sentiment data to provide further guidance towards the impact of higher interest rates on consumer spending power.
Nevertheless, Rakuten Trade Sdn Bhd equity research vice president Thong Pak Leng expects stock accumulation to persist during market dips, heavily influenced by external factors.
“Hence, we foresee that the FBM KLCI will continue to trend within the 1,435-1,445 range towards the weekend, with support at 1,430 and resistance at 1,460," he said.
Bursa heavyweights Maybank Bhd stood at RM9, Public Bank Bhd and Tenaga Nasional Bhd rose a sen to RM4.17 and RM9.89 respectively, CIMB Group Holdings Bhd lost one sen to RM5.68 and Petronas Chemicals Group Bhd shed three sen to RM7.22.
Of the actives, CSH Alliance Bhd and Velesto Energy Bhd were flat at six sen and 26 sen respectively, Widad Group Bhd lost two sen to 45.5 sen, while UEM Sunrise Bhd gained seven sen to 82 sen and Leform Bhd added half a sen to 24.5 sen.
On the index board, the FBM Emas Index was 6.62 points lower at 10,631.7, the FBMT 100 Index was 9.66 points weaker to 10,304.3, the FBM Emas Shariah Index decreased 20.05 points to 10,843.43 and the FBM ACE Index reduced 17.89 points to 5,049.59.
Sector-wise, the Industrial Products and Services Index was 0.52 of a point lower at 171.86, the Plantation Index narrowed 7.1 points to 6,875.48, the Energy Index shed 1.37 points to 870.66, while the Financial Services Index went up 6.61 points to 16,242.79.
The Main Market volume was stronger at 2.15 billion units worth RM1.72 billion compared with 1.55 billion units worth RM1.46 billion on Wednesday.
Warrants turnover shrank to 320.3 million units valued at RM41.67 million against 400.99 million units valued at RM52.67 million yesterday.
The ACE Market volume slid to 742.41 million shares worth RM221.09 million from 867.82 million shares worth RM257.89 million previously.
Consumer products and services counters accounted for 298.45 million shares traded on the Main Market, industrial products and services (722.35 million); construction (167 million); technology (178.36 million); SPAC (nil); financial services (82.78 million); property (316.19 million); plantation (26.7 million); REITs (9.94 million), closed/fund (93,300); energy (142.27 million); healthcare (77.74 million); telecommunications and media (44.85 million); transportation and logistics (42.92 million); and utilities (47.29 million).
Source: The Edge
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