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 4): Bursa Malaysia closed lower on Monday in tandem with the weaker regional market performance as investors were cautiously awaiting a slew of key economic data from several countries, a dealer said.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) shed 0.37% or 5.36 points to 1,451.02 from Friday’s close of 1,456.38.
The benchmark index opened 1.41 points weaker at 1,454.97 and moved between 1,448.17 and 1,457.02 throughout the trading session.
Market breadth was negative, with decliners beating gainers by 591 to 306, while 430 counters were unchanged, 995 untraded and 27 others suspended.
Turnover shrank to 3.16 billion units worth RM1.87 billion from 3.23 billion units worth RM2.26 billion last Friday (Dec 1).
Regionally, Hong Kong’s Hang Seng Index dropped 1.09% to 16,646.05, Singapore’s Straits Times Index slid 0.2% to 3,084.08, Shanghai Stock Exchange Composite Index fell 0.29% to 3,022.91, and Japan's Nikkei 225 shed 0.6% to 33,231.27.
Rakuten Trade equity research vice president Thong Pak Leng said investors are waiting for economic data from Japan, Thailand and the Philippines later this week.
"As for the local bourse, we reckon bargain hunting will prevail, buoyed by the consistent strong inflow of foreign funds, improving economic circumstances, and steady interest rate in the United States,” he said.
As such, he anticipates the KLCI to trend higher within the 1,445-1,465 range for the week, with immediate resistance at 1,465 and support at 1,445.
Meanwhile, Apex Securities Bhd head of research Kenneth Leong expects the local market’s downward bias consolidation undertone to extend as uncertainty persists, while there was an absence of fresh leads.
"Meanwhile, investors will be keeping a close tab on both China and US services and composite data tomorrow," he said.
Among heavyweights, Maybank Bhd was unchanged at RM9, CIMB Group Holdings Bhd added a sen to RM5.78, while Public Bank Bhd and Tenaga Nasional Bhd gave up four sen each to RM4.28 and RM9.98 respectively, and Petronas Chemicals Group Bhd went down 15 sen to RM7.05.
As for the most active counters, Fitters Diversified Bhd, Widad Group Bhd and Sapura Energy Bhd flat at five sen, 47 sen and 4.5 sen respectively, Velesto Energy Bhd eased half a sen to 22 sen, and Berjaya Corp Bhd lost 1.5 sen to 28.5 sen.
On the index board, the FBM Emas Index shaved off 42.23 points at 10,683.42, the FBMT 100 Index slid 40.61 points to 10,354.17 and the FBM Emas Shariah Index tumbled 55.66 points to 10,821.92.
The FBM 70 Index decreased 65.03 points to 13,983.02 and the FBM ACE Index was 17.31 points lower at 5,115.85.
Sector-wise, the Financial Services Index declined 15.21 points to 16,364.36, the Industrial Products and Services Index eased 1.72 points to 170.27, the Energy Index dropped 3.39 points to 812.21, and the Plantation Index slipped 7.19 points to 6,983.22.
The Main Market volume was flat at 1.9 billion units valued at RM1.62 billion against 1.9 billion units valued at RM1.98 billion on Friday.
Warrants turnover fell to 610.12 million units worth RM58.20 million from 639.84 million units worth RM68.94 million previously.
The ACE Market volume declined to 623.39 million shares valued at RM195.27 million versus 686.81 million shares valued at RM205.18 million yesterday.
Consumer products and services counters accounted for 462.14 million shares traded on the Main Market, industrial products and services (511.76 million); construction (79.15 million); technology (121.03 million); SPAC (nil); financial services (63.89 million); property (147.48 million); plantation (26.17 million); REITs (13.13 million), closed/fund (2,600); energy (238.69 million); healthcare (105.37 million); telecommunications and media (38.51 million); transportation and logistics (31.32 million); and utilities (68.54 million).
Source: The Edge
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