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 (Dec 15): Bursa Malaysia ended higher on Friday, continuing its five-day winning streak, boosted by buying across the board amid improving global confidence, a dealer said.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) gained 6.19 points to 1,462.45 compared with Thursday’s closing of 1,456.26.
The index barometer opened 0.31 of a point weaker at 1,455.95 and moved between 1,455.69 and 1,464.78 throughout the day.
In the broader market, gainers surpassed losers 528 to 425, while 460 counters were unchanged, 925 untraded, and 45 others suspended.
Turnover fell to 3.77 billion units worth RM3.4 billion from 4.25 billion units worth RM2.78 billion the previous day.
Rakuten Trade equity research vice president Thong Pak Leng said a dovish shift from the Federal Reserve (Fed), a lower US 10-year Treasury note yield and positive development from China have provided some support to the markets and increased investors’ risk appetite.
“Regionally, major indices recorded gains after the Fed maintained rates and outlined a plan for cuts in 2024 and beyond. Meanwhile, the 10-year Treasury note yield slipped below 4% for the first time since August as traders increasingly anticipate rate cuts in 2024.
“In addition, a substantial increase in China’s industrial output of 6.6% year-on-year against a Reuters poll of 5.6%, which is the highest since November 2022 and surpassing expectations, has further sparked investor sentiment,” he said.
On regional equities, Hong Kong’s Hang Seng rose 2.49% to 16,810.44, South Korea’s Kospi added 0.76% to 2,563.56, Japan’s Nikkei 225 added 0.87% to 32,970.55, and Singapore’s Strait Times Index was 0.25% better at 3,115.12.
On the homefront, heavyweights Maybank Bhd erased five sen at RM9, Tenaga Nasional Bhd lost two sen to RM9.95, Public Bank Bhd gained a sen at RM4.31, CIMB Group Holdings Bhd was two sen better at RM5.83 and Petronas Chemicals Group Bhd was unchanged at RM7.15.
Of the actives, Minetech Resources Bhd and Reneuco Bhd added 2.5 sen each to 12 sen and 24 sen, respectively, Sarawak Consolidated Industries Bhd improved two sen to 85 sen, Widad Group Bhd perked up a sen to 47 sen and Top Glove Corp Bhd lost one sen to 90 sen.
On the index board, the FBM Emas Index increased 48.21 points to 10,835.88, the FBMT 100 Index expanded 47.3 points to 10,502.27, and the FBM Emas Shariah Index strengthened 64.91 points to 10,969.75.
The FBM 70 Index improved 77.49 points to 14,474.12 and the FBM ACE Index expanded 41.35 points to 5,180.67.
Sector-wise, the Financial Services Index went up 6.91 points to 16,436.96 and the Energy Index was 12.06 points better at 816.29.
The Industrial Products and Services Index added 0.74 of a point to 172.47 and the Plantation Index was 45.75 points better at 7,046.57.
The Main Market volume trimmed to 2.47 billion units valued at RM3.1 billion against 2.67 billion units valued at 2.42 billion on Thursday.
Warrants turnover declined to 666.24 million units worth RM102.66 million from 790.68 million units worth RM121.04 previously.
The ACE Market volume dwindled to 630.38 million shares valued at RM203.94 million versus 784.15 million shares valued at RM233.96 the previous day.
Consumer products and services counters accounted for 444.55 million shares traded on the Main Market, industrial products and services (633.26 million); construction (129.16 million); technology (186.04 million); SPAC (nil); financial services (130.66 million); property (214.96 million); plantation (29.41 million); REITs (17.22 million), closed/fund (4,500); energy (209.73 million); healthcare (245.51 million); telecommunications and media (50.18 million); transportation and logistics (37.19 million); and utilities (139.22 million).
Source: The Edge
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