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 6): Bursa Malaysia ended the first trading day of the week on a positive tone, with the benchmark index rising 1.02% to more than an eight-month high, on broad-based buying momentum riding on the improving market sentiment regionally, said Rakuten Trade Sdn Bhd.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) gained 14.74 points to end at its intraday high of 1,464.67 from Friday's (Nov 3) closing of 1,449.93.
The benchmark index opened 2.46 points firmer at 1,452.39 and thereafter hit a low of 1,452.29 in the early session before moving in an upward trajectory.
The broader market stayed positive with gainers beating decliners 665 to 284, while 441 counters were unchanged, 961 untraded and 22 suspended.
Turnover increased to 3.76 billion units valued at RM2.34 billion against 3.6 billion units valued at RM2.02 billion on Friday.
Rakuten Trade equity research vice president Thong Pak Leng said major regional indices also saw an upward trend, reflecting growing optimism that the US Federal Reserve (Fed) has concluded its market-disrupting interest rate hikes aimed at curbing inflation.
In the meantime, the yield on the US 10-year Treasury retreated to 4.58% early on Monday, down from its peak above 5% two weeks ago, he added.
"On the domestic front, we are optimistic on the near- to mid-term outlook of the local market given the improvement in the sentiment and the return of foreign inflows,” Thong said.
Meanwhile, SPI Asset Management managing partner Stephen Innes said the fall in the US bond yields and the fact that the US economy remained in perfect balance would mean that the Fed could be less of a factor influencing the policy going forward.
"Locally, it offers up a huge amount of breathing room for Bank Negara Malaysia to focus on growth rather than worry about currency and the bond market. If global bond yields continue to fall and the ringgit strengthens back below 4.50 against the US dollar, it may even allow the BNM to start discussing rate cuts.
"I think markets will need a little more time to ensure inflation is falling and there is no state-to-state escalation in the Middle East, but we could be entering a bit of a watershed moment for local stocks that are deeply undervalued,” he said.
On Bursa Malaysia, heavyweights Maybank Bhd and Public Bank Bhd jumped seven sen each to RM9.11 and RM4.25, respectively, CIMB Group Bhd surged eight sen to RM5.81, Tenaga Nasional Bhd advanced three sen to RM10, Petronas Chemicals Group Bhd soared 15 sen to RM7.34, and IHH Healthcare Bhd added two sen to RM6.01.
Of the actives, Dagang NeXchange Bhd and PDZ Holdings Bhd were 1.5 sen higher at 44 sen and 5.5 sen, respectively, CN Asia Corp Bhd gained half a sen to 19 sen, SMTrack Bhd and Widad Group Bhd were flat at 4.5 sen and 45 sen, respectively, while KNM Group Bhd shed half a sen to 9.5 sen.
On the index board, the FBM Emas Index surged 110.49 points to 10,809.43, the FBMT 100 Index soared 105.22 points to 10,473.63, and the FBM Emas Shariah Index jumped 106.1 points to 11,012.89.
The FBM 70 Index advanced 142.28 points to 14,240.81 and the FBM ACE Index increased 23.88 points to 5,122.87.
Sector-wise, the Industrial Products and Services Index ticked up 1.46 points to 173.17, the Plantation Index increased 37.4 points to 6,990.65, and the Energy Index was 0.99 of a point better at 876.47.
The Financial Services Index rose 156.94 points to 16,455.82.
The Main Market volume expanded to 2.59 billion units worth RM2.08 billion compared with Friday's 1.94 billion units worth RM1.71 billion.
Warrants turnover fell to 388.59 million units valued at RM49.43 million from 537.52 million units valued at RM77.88 million previously.
The ACE Market volume tumbled to 778.81 million shares worth RM211.14 million from 1.12 billion shares worth RM229.56 million on Friday.
Consumer products and services counters accounted for 372.03 million shares traded on the Main Market, industrial products and services (845.74 million); construction (181.26 million); technology (248.88 million); SPAC (nil); financial services (76.48 million); property (232.18 million); plantation (44.55 million); REITs (146.3 million), closed/fund (69,800); energy (169.79 million); healthcare (98.27 million); telecommunications and media (43.87 million); transportation and logistics (98.93 million); and utilities (158.94 million).
Source: The Edge
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