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 (Feb 14): Bursa Malaysia pared losses on Wednesday from the earlier session due to late buying support. The key index remained in negative territory and ended the day slightly lower due to profit-taking after yesterday's significant gains.
At 5pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) lost 2.04 points to 1,529.33 from Tuesday's close of 1,531.37.
The KLCI opened 3.58 points easier at 1,527.79, and moved between 1,521.79 and 1,530.95 throughout the day.
Decliners led gainers 503 to 387 on the broader market, while 509 counters were unchanged, 901 untraded and 10 others suspended.
Turnover rose to 2.81 billion units valued at RM1.93 billion from Tuesday's 2.11 billion units valued at RM2.04 billion.
Rakuten Trade Sdn Bhd equity research vice president Thong Pak Leng said Bursa Malaysia alongside key regional markets were in negative territory after an unexpected rise in US inflation on Tuesday, where the consumer price index (CPI) increased by 3.1% on an annual basis, exceeding economists' forecast of 2.9%.
“The stronger data diminishes the likelihood of a rate cut by the US Federal Reserve in the near term, he said.
On the local front, the benchmark index is well supported above 1,520 and is strongly holding the crucial breakout line at 1,526 to 1,527.
“We hope the FBM KLCI can sustain this level for an extended period as a solid foundation for further advancement. As such, we are maintaining our weekly KLCI target of between 1,520 and 1,540,” he added.
Among the gainers in the heavyweights, Petronas Dagangan Bhd added 54 sen to RM22.26, CIMB Group Holdings Bhd climbed up three sen to RM6.37, MISC Bhd was seven sen better at RM7.45 and AMMB Holdings Bhd improved five sen to RM4.34.
Other heavyweights, Maybank Bhd was four sen easier at RM9.40, Public Bank Bhd was flat at RM4.40 and Tenaga Nasional Bhd was two sen easier at RM11.06.
As for the actives, RGB International Bhd and MMAG Holdings Bhd added 1.5 sen each at 33 sen and 11.5 sen, Master Tec Group Bhd rose 2.5 sen at 41.5 sen while Widad Group Bhd lost half a sen at 12.5 sen.
On the index board, the FBM Emas Index dropped 15.15 points to 11,358.86, the FBMT 100 Index fell 14.51 points to 11,015.28, the FBM 70 Index shaved 19.38 points to 15,314.93, the FBM Emas Shariah Index dipped 29.24 points to 11,383.4, but the FBM ACE Index gained 9.07 points to 4,842.59.
Sector-wise, the Property Index slipped by 5.63 points to 921.93, the Plantation Index fell 41.18 points to 7,235.45 and the Energy Index went down 0.69 of a point to 890.71.
The Financial Services Index improved 7.11 points to 17,155.37 and the Industrial Products and Services Index shed 0.67 of a point to 174.09.
The Main Market volume slipped to 1.51 billion units worth RM1.69 billion from Tuesday’s 1.57 billion units worth RM1.93 billion.
Warrants turnover widened to 794.82 million units worth RM109.98 million from 205.28 million units worth RM27.91 million the previous day.
The ACE Market volume improved to 485.38 million valued at RM132.17 million from 332.83 million shares valued at RM85.91 million previously.
Consumer products and services counters accounted for 229.52 million shares traded on the Main Market, industrial products and services (475.63 million); construction (123.48 million); technology (119.3 million); SPAC (nil); financial services (60.18 million); property (213.54 million); plantation (24.2 million); REITs (15.61 million), closed/fund (1,000); energy (81.12 million); healthcare (37.89 million); telecommunications and media (41.81 million); transportation and logistics (19.87 million); and utilities (66.1 million).
Source: The Edge
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