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 12): Bursa Malaysia closed the week on a positive note, as the key index settled at its intraday high on Friday, despite a weaker performance in most regional markets, with buying mainly focused on utilities as well as financial services stocks.
YTL Power International Bhd increased 31 sen to RM3.68 a share, YTL Corp Bhd added 12 sen to RM2.36, and Malayan Banking Bhd (Maybank) rose six sen to RM9.06. These stocks lifted the composite index by a combined 7.53 points.
At 5pm on Friday, the FBM KLCI had risen 4.34 points to 1,487.34, from Thursday's close at 1,483.00.
The benchmark index opened 0.24 of a point firmer at 1,483.24 on Friday morning, and hit an intraday low of 1,482.02 in the mid-morning session.
In the broader market, gainers beat decliners 492 to 486, while 445 counters were unchanged, 796 untraded, and 29 others suspended.
Turnover declined to 4.08 billion units worth RM2.84 billion, from 4.64 billion units worth RM3 billion on Thursday.
SPI Asset Management managing partner Stephen Innes said US headline inflation came in hotter than expected, but the supercore component, which the US Federal Reserve (Fed) closely watches, came in softer than expected.
"Hence, market-based rate cut expectations for March remained intact, with the US 10-year bond yield still trading at sub-4%, which was ostensibly favourable for the local bourse," he told Bernama.
Meanwhile, Rakuten Trade equity research vice-president Thong Pak Leng said the key regional indices ended mostly lower, as investors were cautious, following a weak performance on Wall Street overnight.
"With higher-than-expected US inflation in December, economists predict that the Fed is unlikely to cut interest rates in March, with many anticipating that the central bank will postpone such a move until its May meeting," he said.
Among other heavyweights, Petronas Chemicals Group Bhd rose four sen to RM6.92, Telekom Malaysia Bhd perked up seven sen to RM5.82, while Sime Darby Plantation Bhd decreased 11 sen to RM4.31, and Tenaga Nasional Bhd lost 10 sen to RM10.34.
Of the actives, Ekovest Bhd went up 4.5 sen to 59 sen, Sarawak Consolidated Industries Bhd increased four sen to RM1.16, Minetech Resources Bhd eased 2.5 sen to 19.5 sen, Hong Seng Consolidated Bhd inched down half a sen to 1.5 sen, while Widad Group Bhd was flat at 49 sen.
On the index board, the FBM 70 Index put on 49.34 points to 15,163.81, the FBM Emas Index expanded 33.69 points to 11,116.85, the FBMT 100 Index was 32.36 points better at 10,761.88, the FBM Emas Shariah Index garnered 11.63 points to 11,248.98, while the FBM ACE Index shrank 33.19 points to 5,381.43.
Sector-wise, the Energy Index was up by 3.09 points to 865.71, the Financial Services Index bagged 13.39 points to 16,550.04, the Industrial Products and Services Index climbed 0.82 of a point to 175.85, the Property Index added 4.65 points to 892.79, and the Plantation Index trimmed 28.69 points to 7,101.93.
The Main Market volume dropped to 2.78 billion units valued at RM2.52 billion, from 3.12 billion units valued at RM2.67 billion on Thursday.
Warrant turnover dwindled to 573.39 million units worth RM75.62 million, from 671.39 million units worth RM76.17 million previously.
The ACE Market volume tumbled to 726.07 million shares valued at RM240.75 million, versus 834.69 million shares valued at RM252.36 million on Thursday.
Consumer products and services counters accounted for 321.86 million shares traded on the Main Market, followed by industrial products and services (887.94 million), construction (251.26 million), technology (323.31 million), special purpose acquisition companies (nil), financial services (66.17 million), property (418.41 million), plantation (26.82 million), real estate investment trusts (17.97 million), closed/funds (16,200), energy (109.30 million), healthcare (94.07 million), telecommunications and media (26.24 million), transportation and logistics (70.13 million), and utilities (161.55 million).
Source: The Edge
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