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 1): Bursa Malaysia ended the first trading day of November on Wednesday on a negative note on the back of sluggish purchasing managing index (PMI) data in October, recording the 14th consecutive month of contraction, said an analyst.
According to S&P Global Market Intelligence, the latest seasonally adjusted S&P Global Malaysia Manufacturing PMI was unchanged at 46.8 in October, with reports suggesting that firms continued to struggle against the backdrop of demand weakness, both at home and abroad.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) closed 0.47% lower, or 6.81 points, to 1,435.33 from Tuesday's closing of 1,442.14.
The benchmark index opened 0.97 of a point lower at 1,441.17 and moved between 1,434.93 and 1,441.59 throughout the trading session.
The broader market was also negative with decliners beating gainers 562 to 319, while 401 counters were unchanged, 1,068 untraded and 14 suspended.
Turnover decreased to 2.79 billion units valued at RM1.79 billion from 2.99 billion units worth RM1.85 billion on Tuesday.
Apex Securities Bhd head of research Kenneth Leong said, besides that, investors’ cautious sentiment prevailed ahead of the US Federal Reserve (Fed) interest rate decision later on Wednesday.
The weakness in oil and gas heavyweights was also noticeable as crude oil prices retreated over the past two days.
Looking ahead, the stock brokerage expects the market undertone to extend in view of the unabated volatility across global markets, coupled with the absence of fresh domestic leads.
“Investors will be monitoring developments from the Fed tonight [Wednesday] to obtain clues over the interest rate direction. Back home, investors will also keep an eye on Bank Negara Malaysia's interest rate decision to be announced tomorrow [Nov 2] at 3pm,” he said.
Technically, Leong said the KLCI has formed a bearish candle as the key index erased all its previous session gains but maintains its course of consolidation between 1,430 and 1,446 levels.
“Should the 1,430 level be unable to hold, near-term support is seen at 1,424. But, if the key index advances beyond 1,446, the resistance is located at 1,464 and 1,488,” he added.
Among heavyweights, Petronas Chemicals Group Bhd lost 20 sen to RM7.14, Press Metal Aluminium Holdings Bhd slid 10 sen to RM4.82, Dialog Group Bhd eased nine sen to RM2.06, Hong Leong Bank Bhd was down 20 sen to RM19.20, Hong Leong Financial Group Bhd trimmed two sen to RM17.22, while Maybank Bhd was flat at RM9.02.
Of the actives, Classita Holdings Bhd and Kanger International Bhd were flat each at 6.5 sen and 12.5 sen respectively, Ageson Bhd added 4.5 sen to 7.5 sen, Ranhill Utilities Bhd rose 15.5 sen to 73.5 sen, and Sarawak Consolidated Industries Bhd increased a sen to 56 sen.
On the index board, the FBM Emas Index shaved off 57.39 points to 10,581.2, the FBMT 100 Index fell 56.93 points to 10,258.43, and the FBM Emas Shariah Index slid 76.88 points to 10,764.71.
The FBM 70 Index gave up 113.15 points to 13,924.72 while the FBM ACE Index shed 18.89 points to 4,998.52.
Sector-wise, the Industrial Products and Services Index dipped 2.39 points to 170.01, the Plantation Index erased 18.11 points to 6,886.06, the Energy Index eased 10.64 points to 857.65, and the Financial Services Index declined 49.80 points to 16,201.74.
The Main Market volume improved to 1.85 billion units worth RM1.55 billion compared with 1.82 billion units valued at RM1.57 billion on Tuesday.
Warrants turnover tumbled to 294.17 million units valued at RM45.74 million against 409.72 million units worth RM65.09 million the previous day.
The ACE Market volume dwindled to 643.01 million shares worth RM200.7 million from 749.32 million shares valued at RM215.22 million previously.
Consumer products and services counters accounted for 450.28 million shares traded on the Main Market, industrial products and services (437.48 million); construction (174.77 million); technology (138 million); SPAC (nil); financial services (41.98 million); property (188.13 million); plantation (24.75 million); REITs (13.52 million), closed/fund (3,000); energy (97.14 million); healthcare (56.12 million); telecommunications and media (22.93 million); transportation and logistics (66.87 million); and utilities (140.96 million).
Source: The Edge
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