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 17): Bursa Malaysia ended lower on Wednesday in tandem with its regional peers, jittered by uncertainties over the US interest rates path as well as the health of China’s economy after the release of its 2023 gross domestic product (GDP), a dealer said.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 2.66 points to 1,491.21 from Tuesday's close of 1,493.87.
The KLCI opened 1.98 points easier at 1,491.89 and moved between 1,487.52 and 1,494.32 during the trading session.
On the broader market, decliners thumped gainers 832 to 265, while 385 counters were unchanged, 761 untraded and 18 others suspended.
Turnover decreased to 5.23 billion units worth RM3.17 billion from 5.84 billion units worth RM3.59 billion on Tuesday.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the regional equities market was mostly in the red on Wednesday.
“The anticipation for the US rate cut in March received a backlash as a Federal Reserve official seemed to be reluctant to enact monetary easing in the near term.
“Meanwhile, China’s 2023 GDP growth came in at 5.2% compared to 3% posted in 2022, and within the government forecast of around 5%. However, the slump in its property market suggests that China’s authority needs to do more to stimulate its economy,” he said.
Mohd Afzanizam also noted that the ongoing military conflict in the Red Sea could also potentially affect the global supply chain, which could result in the disruption to timely deliveries of goods which to some degree can be deemed inflationary as it can raise the cost of doing business.
Regionally, Japan's Nikkei 225 inched down 0.4% to 35,477.75, Hong Kong’s Hang Seng Index slipped 3.71% to 15,276.9, Shanghai Stock Exchange Composite Index lost 2.09% to 2,833.62, Singapore’s Straits Times Index dipped 1.19% to 3,147.06, and South Korea’s Kospi fell 2.47% to 2,435.9.
Among the heavyweights, Maybank Bhd and Public Bank Bhd slid a sen each to RM9.05 and RM4.35, respectively, Tenaga Nasional Bhd eased two sen to RM10.44, Petronas Chemicals Group Bhd fell 12 sen to RM6.76, and CIMB Group Holdings Bhd gained two sen to RM6.03.
Of the actives, Leform Bhd declined 9.5 sen to 17.5 sen, Sarawak Consolidated Industries Bhd lost 30 sen to 53.5 sen and Mercury Securities Group Mercury slipped 29.5 sen to 45.5 sen.
Minetech Resources Mercury gained 1.5 sen to 17 sen while Ekovest Mercury was unchanged at 56 sen.
On the index board, the FBM Emas Index lost 40.83 points to 11,102.83, the FBM 70 Index tumbled 98.13 points to 15,043.76, the FBMT 100 Index declined 32.19 points to 10,760.8, the FBM Emas Shariah Index decreased 67.35 to 11,191.06, and the FBM ACE Index dropped 150.16 points to 5,047.77.
Sector-wise, the Financial Services Index sank 35.46 points to 16,635.13, the Property Index was down 7.88 points to 888.36, the Industrial Products and Services Index dipped 3.14 points to 173.36, the Energy Index slipped 8.88 points to 849.93, while the Plantation Index rose 8.56 points to 7,172.57.
The Main Market volume fell to 3.32 billion units valued at RM2.73 billion from 3.9 billion units valued at RM3.12 billion on Tuesday.
Warrants turnover dwindled to 584.38 million units worth RM66.07 million from 779.86 million units worth RM104.12 million previously.
The ACE Market volume increased to 1.41 billion shares valued at RM370.40 million versus 1.15 million shares valued at RM366.67 million on Tuesday.
Consumer products and services counters accounted for 427.55 million shares traded on the Main Market, industrial products and services (1.05 billion); construction (336.23 million); technology (252.15 million); SPAC (nil); financial services (118.42 million); property (404.92 million); plantation (16.73 million); REITs (17.39 million), closed/fund (39,000); energy (180.18 million); healthcare (132.57 million); telecommunications and media (83.23 million); transportation and logistics (63.56 million); and utilities (141.88 million).
Source: The Edge
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