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 (March 20): Bursa Malaysia continued its downtrend to close lower for the second consecutive day as the markets anxiously awaited the US Federal Open Market Committee (FOMC) decision later in the night.
The FTSE Bursa Malaysia KLCI (FBM KLCI) also remained in consolidation mode due to a correction following the recent prolonged rally.
At 5pm, the KLCI fell 9.17 points to 1,535.79 from Tuesday’s close of 1,544.96.
The benchmark index, which opened 0.1 of a point firmer at 1,545.06, moved between 1,535.77 and 1,546 throughout the day.
On the broader market, decliners and gainers were even at 509 to 509, while 484 counters were unchanged, 791 untraded, and 11 others suspended.
Turnover slid to 3.82 billion units worth RM2.66 billion from 4.06 billion units worth RM3.09 billion on Tuesday.
Interpacific Asset Management chief economist and fund manager Datuk Dr Nazri Khan said that the KLCI slipped to a physical level of 1,550 as the selling pressure escalated.
"The market is directionless and drifts longer until it gets clarification from the US Federal Reserve’s (Fed) policy meeting," he said.
Meanwhile, Rakuten Trade Sdn Bhd equity research vice president Thong Pak Leng said key regional indices finished mostly higher following positive cues from Wall Street overnight.
However, gains were capped as markets awaited further cues on the US interest rates following the conclusion of the FOMC meeting later on Wednesday night.
"On the local front, while the market anticipates a brief pause for the bulls after last week's strong rally, the index has maintained its position above all exponential moving averages (EMA).
"We view this as a healthy correction as it allows the market to digest the recent rally and provide a stronger base for a more sustainable uptrend," he said.
Hence, Thong foresees the KLCI trending within the 1,540-1,560 range for the rest of the week.
Among the heavyweights, Maybank Bhd shed eight sen to RM9.57, Public Bank Bhd eased four sen to RM4.24, CIMB Group Holdings Bhd trimmed 13 sen to RM6.48, Petronas Chemicals Group Bhd added two sen to RM6.83, and Tenaga Nasional Bhd was flat at RM11.50.
As for the actives, Top Glove Corp Bhd gained 6.5 sen to 86 sen, both TWL Holdings Bhd and MMAG Holdings Bhd inched up half a sen to 3.5 sen and 15.5 sen, respectively, and Velesto Energy Bhd was flat at 29 sen.
On the index board, the FBM Emas Index fell 33.59 points to 11,484.96 and the FBMT 100 Index was 39.39 points lower to 11,138.88.
The FBM Emas Shariah Index gained 24.76 points to 11,562.02, the FBM 70 Index increased by 55.78 points to 15,806.15, and the FBM ACE Index jumped 21.92 points to 4,773.01.
Sector-wise, the Plantation Index climbed 15.97 points to 7,294.73 and the Energy Index rose 11.26 points to 936.67.
However, the Industrial Products and Services Index eased 0.11 of a point to 177.24 and the Financial Services Index dipped 157.2 points to 17,124.18.
The Main Market volume declined to 2.07 billion units valued at RM2.30 billion from 2.50 billion units valued at RM2.77 billion on Tuesday.
Warrants turnover expanded to 864.16 million units worth RM117.07 million from 805.77 million units worth RM104.88 million the previous day.
The ACE Market volume swelled to 846.93 million shares worth RM240.19 million from 744.37 million shares worth RM205.36 million previously.
Consumer products and services counters accounted for 217.17 million shares traded on the Main Market, industrial products and services (372.58 million); construction (214.95 million); technology (215.88 million); SPAC (nil); financial services (84.30 million); property (388.78 million); plantation (36.69 million); REITs (15.12 million), closed/fund (9,000); energy (198.48 million); healthcare (146.92 million); telecommunications and media (48.22 million); transportation and logistics (76.02 million); and utilities (56.01 million).
Source: The Edge
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