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 (April 16): Bursa Malaysia ended lower for the second consecutive day on Tuesday, tracking the weak global sentiment due to the Middle East conflict, said an analyst.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 7.53 points, or 0.49%, to 1,535 from Monday's close of 1,542.53.
The benchmark index, which opened 1.45 points lower at 1,541.08, moved between 1,532.49 and 1,541.59 throughout the trading session.
Market breadth was negative with decliners overwhelming gainers 1,159 to 133, while 275 counters were unchanged, 785 untraded, and 11 others suspended.
Turnover increased to 4.33 billion units worth RM3.05 billion from 4.28 billion units worth RM3.25 billion on Monday
Mohd Sedek Jantan, head of wealth research and advisory and designated portfolio manager at UOB Kay Hian Wealth Advisors, said besides rising geopolitical tensions, the weak sentiment was exacerbated by a slowing Chinese economy demonstrated by poor data for China's retail sales and industrial output.
"Investors are currently grappling with two main concerns, which have intensified fear and triggered panic selling.
"The present risk-off atmosphere is weighing on equities, and the FBM KLCI may continue to consolidate sideways," he said.
Meanwhile, Rakuten Trade Sdn Bhd equity research vice president Thong Pak Leng said the local bourse was lower in tandem with the heavy selling across the region.
He said key regional indices closed lower on growing fears of the escalating conflict in the Middle East, coupled with the broad sell-off on Wall Street overnight which also impacted investor sentiment.
"Back home, the benchmark index failed to hold its 1,538 support level. Hence, we spot the next crucial support level at around 1,528-1,530.
"Despite the cautious sentiment, we see the sell-off as an opportunity for investors to go bargain hunting for stocks at lower levels," he said, adding the KLCI is anticipated to trend within the 1,530-1,550 range for the rest of the week.
Among the heavyweights, Maybank Bhd lost seven sen to RM9.58, Public Bank Bhd slipped a sen to RM4.11, CIMB Group Holdings Bhd dropped 10 sen to RM6.48 and Tenaga Nasional Bhd dipped 14 sen to RM11.46, while Petronas Chemicals Group Bhd was flat at RM6.80.
As for the actives, TWL Holdings Bhd and Velesto Energy Bhd inched down by half a sen each to three sen and 27 sen, respectively, Malaysian Resources Corp Bhd slipped 3.5 sen to 65.5 sen, Dagang NeXchange Bhd slid a sen to 40 sen, while Sapura Energy Bhd was flat at five sen.
On the index board, the FBM Emas Index fell 85.19 points to 11,515.01, the FBMT 100 Index tumbled 70.08 points to 11,168.98, and the FBM 70 Index dipped 163.05 points to 15,996.8.
The FBM ACE Index shaved off 114.53 points to 4,881.94 and the FBM Emas Shariah Index gave up 60.15 points to 11,696.43.
Sector-wise, the Plantation Index shed 33.38 points to 7,399.24, the Industrial Products and Services Index eased 1.74 points to 182.08, the Financial Services Index sank 160.2 points to 17,008.95, and the Energy Index slid 16.55 points to 949.94.
The Main Market volume rose to 3.03 billion units valued at RM3.36 billion versus 2.42 billion units valued at RM2.88 billion on Monday.
Warrants turnover shrank to 1.14 billion units worth RM128.50 million against 1.12 billion units worth RM121.17 million previously.
The ACE Market volume decreased to 744.71 million shares worth RM231.13 million from 723.24 million shares worth RM241.84 million on Monday.
Consumer products and services counters accounted for 292.97 million shares traded on the Main Market, industrial products and services (445.59 million), construction (297.49 million), technology (218.09 million), SPAC (nil), financial services (133.15 million), property (654.85 million), plantation (55.52 million), REITs (12.24 million), closed/fund (37,500), energy (330.19 million), healthcare (41.61 million), telecommunications and media (25.96 million), transportation and logistics (34.84 million), and utilities (77.97 million).
Source: The Edge
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