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 (Jan 11): Bursa Malaysia took a breather to end at an intraday low on Thursday, dragged down mainly by the consumer products and services as well as industrial products and services sectors, ahead of the release of US consumer price index (CPI) data later in the day.
Genting Malaysia Bhd lost 17 sen to RM2.68, Petronas Chemicals Group Bhd slid 12 sen to RM6.88, Genting Bhd eased 19 sen to RM4.68, and Press Metal Aluminium Holdings Bhd was eight sen lower at RM4.82. These stocks pulled down the composite index by a combined 5.53 points.
At 5pm, the FBM KLCI had edged down by 3.86 points to 1,483.00, from Wednesday’s close at 1,486.86.
The benchmark index opened 0.29 of a point better at 1,487.15, and thereafter moved to its highest level of 1,492.44 in the early morning session.
On the broader market, decliners beat gainers 568 to 406, while 447 counters were unchanged, 797 untraded, and 29 others suspended.
Turnover declined to 4.64 billion units worth RM3 billion, from 4.97 billion units worth RM2.84 billion on Wednesday.
SPI Asset Management managing partner Stephen Innes said benign US inflation outcomes had indeed played a significant role in shaping global expectations for interest rate cuts.
"Ahead of the US CPI release, assets perceived as riskier, such as the local bourse, were taking a breather and leaning towards profit-taking. This cautious approach was in anticipation of the much-awaited US CPI report later today (Thursday)," he told Bernama.
He said global investors will use the US CPI data to gauge the potential timing of the US Federal Reserve’s interest rate cuts.
"A softer print could be extremely favourable for Malaysian growth stocks, suggesting a possible US rate cut as soon as March," he added.
Meanwhile, Rakuten Trade equity research vice-president Thong Pak Leng said the key regional indices finished higher, following a positive lead-in from Wall Street overnight, with focus mainly on the key US inflation data for more cues about US interest rate cuts.
Thong said gains in Japanese stocks were driven by expectations that the Bank of Japan will maintain its dovish policy in the near term, while Hong Kong was among the top performers due to a recovery in heavyweight tech stocks.
"On the domestic front, we believe today's (Thursday) selling was a healthy correction, as it enabled the market to absorb the recent uptrend, and provided a good opportunity to accumulate stocks at lower levels.
"Hence, we anticipate the KLCI to trend slightly higher within the 1,480-1,490 range towards the weekend. Technically, the benchmark index has formed a new support level at 1,470, while resistance remains at 1,500," he said.
Among the other heavyweights, Maxis Bhd shrank three sen to RM3.83 and Tenaga Nasional Bhd erased four sen to RM10.44, while Sime Darby Plantation Bhd was seven sen higher at RM4.42, and Telekom Malaysia Bhd rose five sen to RM5.75.
Of the actives, Sarawak Consolidated Industries Bhd put on four sen to RM1.12, TWL Holdings Bhd eased one sen to four sen, Minetech Resources Bhd inched down half a sen to 22 sen, while Hong Seng Consolidated Bhd at two sen and Widad Group Bhd at 49 sen were both flat.
On the index board, the FBM 70 Index perked 35.83 points to 15,114.47, the FBM Emas Index decreased 14.67 points to 11,083.16, the FBMT 100 Index was 14.23 points lower at 10,729.52, the FBM ACE Index narrowed 18.23 points to 5,414.62, and the FBM Emas Shariah Index gave up 2.39 points to 11,237.35.
Sector-wise, the Energy Index rose 12.44 points to 862.62, the Plantation Index surged 63.11 points to 7,130.62, the Financial Services Index trimmed 11.14 points to 16,536.65, the Industrial Products and Services Index shed 1.43 points to 175.03, and the Property Index dipped 8.28 points to 888.14.
The Main Market volume dropped to 3.12 billion units valued at RM2.67 billion, from 3.32 billion units valued at RM2.50 billion on Wednesday.
Warrant turnover dwindled to 671.39 million units worth RM76.17 million, from 711.64 million units worth RM86.69 million.
The ACE Market volume declined to 834.69 million shares valued at RM252.36 million, versus 923.63 million shares valued at RM257.19 million previously.
Consumer products and services counters accounted for 459.93 million shares traded on the Main Market, followed by industrial products and services (786.66 million), construction (175.48 million), technology (533.23 million), special purpose acquisition companies (nil), financial services (82.43 million), property (536.23 million), plantation (30.14 million), real estate investment trusts (13.32 million), closed/funds (25,500), energy (239.23 million), healthcare (74.67 million), telecommunications and media (29.44 million), transportation and logistics (70.91 million), and utilities (87.20 million).
Source: The Edge
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