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 29): Bursa Malaysia wrapped up 2023 to close at its intraday low at 1,454,66 on Friday compared with the first-day opening this year at 1,488.54, weighed by persistent selling pressure throughout most part the year due to outflow of funds as a result of various rate hikes in the US, a dealer said.
Consequently, Rakuten Trade equity research vice president Thong Pak Leng said the FTSE Bursa Malaysia KLCI (FBM KLCI) fell to its year low of 1,374.64 on June 8, 2023, but the situation improved when foreign funds returned to the country at the beginning of July.
At 5pm, the KLCI closed 2.75 points or 0.18% lower to 1,454.66 from Thursday’s close of 1,457.41.
The key index opened 0.16 of a point better at 1,457.57 and thereafter moved to a high of 1,461.4 during the early morning session.
In the broader market, losers surpassed gainers 486 to 431, while 453 counters were unchanged, 890 untraded and 45 others suspended.
Turnover went up to 4.67 billion units worth RM2.96 billion from 4.24 billion units worth RM2.39 billion on Thursday.
Thong said the KLCI reversed earlier gains and ended the year on a negative note due to profit taking while trading activities were subdued as some traders sought a head start on the New Year's festivities.
"Japan and Hong Kong also closed lower due to profit-taking activities. Meanwhile, investors are simultaneously assessing the prospects of electric-vehicle (EV) companies after China’s Xiaomi unveiled its first EV," he said.
On the domestic front, he said the benchmark index bounced off the 20-day Exponential Moving Average (EMA) line on Friday.
"With the 20-day EMA beginning to turn upward and the index moving away from all EMA lines, we believe there is upward momentum in the near term," he explained.
To recap 2023, Thong said the first half was a bad period because of the poor performance in the region as a result of the outflow of funds to the US when the interest rate was increased several times.
"The performance in the second half was better as the FBM KLCI tested the 1,465 level several times, supported by buying from foreign and institutional funds," he added.
Among the heavyweights, Maybank Bhd lost two sen to RM8.89, Petronas Chemicals Group Bhd fell five sen to RM7.16, while Public Bank Bhd and CIMB Group Holdings Bhd added a sen each to RM4.29 and RM5.85 respectively, and Tenaga Nasional Bhd gained four sen to RM10.04.
Of the actives, Green Ocean Corp Bhd rose 10 sen to 22.5 sen, Dataprep Holdings Bhd climbed 1.5 sen to 17 sen, while Pelikan International Corp Bhd fell 5.5 sen to 28 sen, Minetech Resources Bhd eased half a sen to 14.5 sen, and Hong Seng Consolidated Bhd was unchanged at 2.5 sen.
On the index board, the FBM 70 Index went down 14.15 points to 14,612.98, the FBM Emas Shariah Index slipped 35.02 points to 10,988.71, the FBM Emas Index shed 19.92 points to 10,823.7, the FBMT 100 Index slid 17.35 points to 10,485.72, while the FBM ACE Index surged 50.28 points to 5,322.03.
Sector-wise, the Plantation Index decreased 9.35 points to 7,007.96, the Property Index declined 2.05 points to 862.11, and the Energy Index sank 2.24 points to 817.73.
Meanwhile, the Industrial Products and Services Index went up 0.12 of a point to 172.99 and the Financial Services Index climbed 5.52 points to 16,303.04.
The Main Market volume shrank to 2.68 billion units valued at RM2.57 billion against 2.83 billion units valued at RM2.06 billion on Thursday.
Warrants turnover declined to 475.43 million units worth RM48.80 million from 481.6 million units worth RM64.44 million on Thursday.
The ACE Market volume expanded to 1.46 billion shares valued at RM335.06 million versus 913.45 million shares valued at RM265.69 million previously.
Consumer products and services counters accounted for 477.22 million shares traded on the Main Market, industrial products and services (727.84 million); construction (305.74 million); technology (384.83 million); SPAC (nil); financial services (182.11 million); property (177.96 million); plantation (17.93 million); REITs (10.26 million), closed/fund (45,300); energy (79.83 million); healthcare (143.29 million); telecommunications and media (29.12 million); transportation and logistics (50.40 million); and utilities (96.76 million).
Source: The Edge
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