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 (Nov 8): Losses in heavyweight counters, led by banking stocks, weighed on the FBM KLCI amid caution ahead of US Federal Reserve (Fed) chairman Jerome Powell’s speech on the US interest rate outlook later on Wednesday and Thursday.
However, the broader market was positive as interest centred on lower liners due to optimism over corporate earnings and improving economic conditions, according to Rakuten Trade equity research vice president Thong Pak Leng.
At 5pm, the KLCI fell 0.39%, or 5.77 points to end at 1,457.6 from Tuesday's closing of 1,463.37.
The index opened 2.24 points easier at 1,461.13 and moved between 1,454.46 and 1,462.01 throughout the trading session.
The broader market was positive as gainers led decliners 490 to 412, while 454 counters were unchanged, 1,008 untraded and 10 others suspended.
Turnover expanded to 3.45 billion units valued at RM1.97 billion from Tuesday’s 3.27 billion units valued at RM2.17 billion.
Thong said the near-term outlook for Malaysian stocks is likely to remain positive, supported by their attractive valuations, robust corporate earnings and improving economic conditions.
“We anticipate the benchmark index to rebound anytime soon and expect it to trend within the range of 1,455-1,470 for the rest of the week,” he said.
Among heavyweights, Public Bank Bhd lost three sen to RM4.21, Hong Leong Financial Group Bhd slid 46 sen to RM17.14 and CIMB Group Holdings Bhd fell four sen to RM5.77. Maybank Bhd dropped three sen to RM9.12 and IHH Healthcare Bhd was five sen weaker at RM6.
Of the actives, Fitters Diversified Bhd and Kanger International Bhd were flat at five sen and 9.5 sen, respectively, while Top Glove Corp Bhd added one sen to 79 sen. SMTrack Bhd and Widad Group Bhd were both flat at 4.5 sen and 45.5 sen, respectively.
On the index board, the FBM Emas Index trimmed 22.70 points to 10,779.38 and the FBMT 100 Index shed 25.65 points to 10,443.06.
The FBM Emas Shariah Index added 1.32 points to 10,999.43, the FBM 70 Index advanced 33.28 points to 14,286.61 and the FBM ACE Index gained 32.57 points to 5,130.1.
Sector-wise, the Industrial Products and Services Index inched up 0.56 of a point to 173.41 and the Plantation Index shed 1.5 points to 6,956.36. The Energy Index was 5.93 points weaker at 864.95 and the Financial Services Index dipped 89.58 points to 16,370.25.
The Main Market volume went up to 2.23 billion units worth RM1.71 billion compared with Tuesday’s 2.1 billion units worth RM1.91 billion.
Warrant turnover fell to 379.18 million units valued at RM56.94 million from 380.13 million units valued at RM53.48 million the previous day.
The ACE Market volume increased to 835.54 million shares worth RM209.59 million from 774.76 million shares worth RM199.73 million previously.
Consumer products and services counters accounted for 374.72 million shares traded on the Main Market, industrial products and services (666.49 million); construction (175.01 million); technology (204.33 million); SPAC (nil); financial services (45.12 million); property (242.76 million); plantation (30.75 million); REITs (8.7 million), closed/fund (30,000); energy (97.38 million); healthcare (171.09 million); telecommunications and media (21.15 million); transportation and logistics (72.8 million); and utilities (124.51 million).
Source: The Edge
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