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 9): The FTSE Bursa Malaysia KLCI (FBM KLCI) ended in positive territory driven by energy-related stocks amid the stronger oil market due to tensions in the Middle East.
At 5pm, the barometer index rose 0.38 of a point to 1,417.26 from last Friday’s (Oct 6) close of 1,416.88.
The index, which opened 0.18 of a point higher at 1,417.06 in the morning, moved between 1,415.8 and 1,420.71 during the day.
However, overall market breadth was negative with losers outpacing gainers 500 to 343 while 447 counters were unchanged, 1,020 untraded and nine others suspended.
Turnover strengthened to 2.88 billion units worth RM1.78 billion from 2.86 billion units worth RM2.09 billion last Friday.
SPI Asset Management managing partner Stephen Innes said the market’s risk-off sentiment continued to prevail amid an escalation of geopolitical risk in the Middle East.
“So the bursa traded with a risk-off bias. This is a typical global reaction that hurts most stock markets.
“Locally, there is likely some concerns over budget 2024 from foreign investors who are likely waiting for the budget to be tabled,” he said.
On a positive note, he said stock markets tend to recover quickly once tension in the Middle East subsides and this was evidenced during the afternoon session.
Meanwhile, Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the KLCI closed flat due to a lack of buying interest amid the mixed performance of regional markets.
“Nonetheless, the benchmark index finished in positive territory.
“Meanwhile, key regional indices showed mixed trends as investors awaited inflation readings and trade data from China and India later this week,” he said.
Thong said sentiment remained cautious following the Middle East tensions as the ongoing conflict in the Middle East raised concerns about surging oil prices, which might threaten disruptions in the oil supply, as Brent crude oil rose by more than US$3 (RM14.17) a barrel to US$86.95.
On the domestic front, he said sentiment is expected to continue to remain cautious and external volatility is anticipated to increase along with some selling pressure from foreign funds.
“However, it’s worth noting that the valuation of the FBM KLCI remains attractive at its current level.
“Therefore, we anticipate that the benchmark index will maintain its sideways pattern with an upside bias within the range of 1,415-1,430 for the week,” he said.
He added that from a technical standpoint, he saw immediate support at 1,415 and resistance at 1,430.
Among the heavyweight counters, Petronas Chemicals Group Bhd edged up seven sen to RM7.17, Maybank Bhd rose three sen to RM8.80 and Tenaga Nasional Bhd eased five sen to RM9.97 while Public Bank Bhd and CIMB Group Holdings Bhd were flat at RM4.03 and RM5.42.
Of the actives, KNM Group Bhd slid 2.5 sen to 14.5 sen, Sarawak Consolidated Industries Bhd went down 1.5 sen to 48.5 sen and Systech Bhd lost two sen to 46.5 sen while Kanger International Bhd and Widad Group Bhd were flat at 11 sen and 53.5 sen.
On the index board, the FBM Emas Index improved by 5.4 points to 10,509.24, the FBMT 100 Index widened by 8.59 points to 10,178.23 and the FBM Emas Shariah Index decreased by 2.61 points to 10,791.48.
The FBM 70 Index went up 37.58 points to 14,029.75 and the FBM ACE Index slipped 23 points to 5,127.51.
Sector-wise, the Plantation Index recovered 12.65 points to 6,849.85, the Financial Services Index edged up 17.25 points to 15,886.84 and the Energy Index climbed 17.73 points to 867.67 but the Industrial Products Services Index was weaker by 0.19 of a point to 170.63.
The Main Market volume inched up to 1.91 billion units worth RM1.51 billion from 1.9 billion units worth RM1.84 billion on Friday.
Warrant turnover contracted to 240.3 million units valued at RM30.70 million against 310.5 million units valued at RM44.32 million previously.
The ACE Market volume expanded to 720.16 million shares worth RM237.92 million from 637.41 million shares worth RM203.19 million previously.
Consumer products and services counters accounted for 173.43 million shares traded on the Main Market, industrial products and services (403.39 million); construction (139.8 million); technology (102.26 million); SPAC (nil); financial services (61.25 million); property (277.52 million); plantation (53.26 million); REITs (5.37 million), closed/fund (19,900); energy (457.93 million); healthcare (59.63 million); telecommunications and media (36.32 million); transportation and logistics (65.15 million) and utilities (73.57 million).
Source: The Edge
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