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 5): Bursa Malaysia's barometer index ended slightly lower on Tuesday, paring most of its earlier losses, thanks to a rebound in telecommunications, consumer products and services as well as banking stocks.
At 5pm, the FBM KLCI had fallen 1.56 points to 1,449.46, from Monday's close at 1,451.02.
The index, which opened 0.11 of a point higher at 1,451.13, fluctuated between 1,444.58 and 1,451.59 during the day.
Market breadth was negative, with decliners beating gainers 492 to 369, while 467 counters were unchanged, 986 untraded, and 13 others suspended.
Turnover climbed to 3.54 billion units worth RM2 billion, from 3.16 billion units worth RM1.87 billion on Monday.
Rakuten Trade equity research vice-president Thong Pak Leng said the local market saw investors pick up beaten-down counters following selling that occurred since Monday.
"We believe the sell-off offers an opportunity for investors to accumulate stocks at attractive levels," he told Bernama.
Nevertheless, he said investors remained cautious ahead of the US job market report, which could offer insights into the Federal Reserve's stance on interest rates, ahead of the last Federal Open Market Committee meeting of the year on Dec 12-13.
The markets currently expect a pause in interest rate movement this year, and a rate cut as early as March next year.
On top of that, the intensifying Middle East conflict continued to negatively impact investor sentiment in various markets.
"Based on the current market sentiment, we reckon that the KLCI will stay in consolidation mode, and trend within the 1,445-1,465 range for the rest of the week until fresh catalysts emerge," he noted.
Meanwhile, Asian markets reportedly fell across the board, as investors assessed a slew of economic data across the region. In Japan, the Nikkei 225 fell 1.37%, China’s SSE Composite dipped 1.67%, while Hong Kong’s Hang Seng Index tumbled 1.91%.
On the local bourse, heavyweights CelcomDigi Bhd at RM4.23 and RHB Bank Bhd at RM5.48 had bagged three sen each.
Nestlé (Malaysia) Bhd rose RM1.10 to RM115, while Axiata Group Bhd at RM2.42 and Petronas Chemicals Group Bhd at RM7.07 had risen two sen each.
As for the most active counters, Sapura Energy Bhd at four sen and Widad Group Bhd at 46.5 sen had dropped half a sen each, Classita Holdings Bhd added one sen to 5.5 sen, Velesto Energy Bhd was flat at 22 sen, and Leform Bhd gained half a sen to 34 sen.
On the index board, the FBM Emas Index slipped 1.05 points to 10,682.37, the FBMT 100 Index eased 1.11 points to 10,353.06, and the FBM ACE Index dropped 37.04 points to 5,078.81.
The FBM 70 Index increased by 42.25 points to 14,025.27, and the FBM Emas Shariah Index rose 14.75 points to 10,836.67.
Sector-wise, the Financial Services Index fell 24.07 points to 16,340.29, the Industrial Products and Services Index shed 0.44 of a point to 169.83, the Energy Index edged down 2.99 points to 809.22, and the Plantation Index improved 5.68 points to 6,988.90.
The Main Market volume expanded to 2.06 billion units valued at RM1.70 billion, against 1.90 billion units valued at RM1.62 billion on Monday.
Warrant turnover increased to 678.24 million units worth RM69.44 million, from 610.12 million units worth RM58.20 million previously.
The ACE Market volume advanced to 799.46 million shares valued at RM232.45 million, versus 623.39 million shares valued at RM195.27 million on Monday.
Consumer products and services counters accounted for 436.11 million shares traded on the Main Market, followed by industrial products and services (378.40 million), construction (84.61 million), technology (115.56 million), special purpose acquisition companies (nil), financial services (55.28 million), property (236.93 million), plantation (33.31 million), real estate investment trusts (11.73 million), closed/funds (5,000), energy (430.97 million), healthcare (118.18 million), telecommunications and media (35.07 million), transportation and logistics (35.61 million), and utilities (84.28 million).
Source: The Edge
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