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 3): Bursa Malaysia drifted lower on Wednesday as the key index snapped a three-day winning streak, taking a cue from the negative developments on Wall Street overnight, said an analyst.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) shed 10.98 points, or 0.7%, to 1,537.01 from Tuesday’s close of 1,547.99.
The benchmark index opened 0.7 of a point easier at 1,547.29 and moved between 1,537.01 and 1,548.42 throughout the trading session.
On the broader market, decliners beat gainers 593 to 480, with 487 counters unchanged, 734 untraded, and 13 others suspended.
Turnover widened to 4.26 billion units worth RM2.87 billion compared with 4.15 billion units valued at RM2.81 billion on Tuesday.
Apex Securities Bhd head of research Kenneth Leong said the weakness also came in due to profit-taking activities following the past sessions of gains as weakness was evident in the majority of the banking heavyweights.
“Moving forward, we expect choppiness to prevail amid the absence of fresh leads, while investors will be focusing on the United States Federal Reserve chairman Jerome Powell’s speech later tonight [Wednesday].
“Any hawkish remarks over the prospects of an interest rate cut may continue to dampen sentiment and vice versa,” he said.
Leong said that technically, the KLCI has formed a bearish candle to wipe out all its previous session gains.
Still, the key index may trade within the consolidation band, oscillating between the immediate resistance located at 1,560 with the near-term support pegged at 1,520.
Among the heavyweights, MR DIY Group (M) Bhd eased three sen to RM1.48, Public Bank Bhd dropped seven sen to RM4.16, CIMB Group Holdings Bhd was down by 10 sen to RM6.56, Axiata Group Bhd declined four sen to RM2.63 and Telekom Malaysia Bhd slid eight sen to RM6.02.
For most actives, SNS Network Technology Bhd was four sen firmer at 37 sen, Zen Tech International Bhd rose half a sen to two sen, Velesto Energy Bhd dropped half a sen to 29.5 sen and Bumi Armada Bhd added 1.5 sen to 59.5 sen.
On the index board, the FBM Emas Index was 55.69 points weaker at 11,584.77, the FBMT 100 Index decreased 59.1 points to 11,221.82, and the FBM Emas Shariah Index trimmed 20.12 points to 11,713.83.
Meanwhile, the FBM 70 Index improved by 0.79 of a point to 16,229.43 and the FBM ACE Index rose 6.95 points to 4,954.75.
Sector-wise, the Financial Services Index fell 208.59 points to 17,151.85, the Energy Index added 9.12 points to 966.04, the Plantation Index perked up 0.51 of a point to 7,311.16, and the Industrial Products and Services Index firmed by 0.07 of a point to 179.91.
The Main Market volume decreased to 1.99 billion units worth RM2.48 billion versus 2.22 billion units valued at RM2.34 billion on Tuesday.
Warrants turnover slipped to 1.05 billion units valued at RM126.96 million against 1.31 billion units worth RM165.26 million the previous day.
The ACE Market volume surged to 1.19 billion shares worth RM265.31 million from 963.81 million shares valued at RM308.31 million previously.
Consumer products and services counters accounted for 265.5 million shares traded on the Main Market, industrial products and services (402.55 million); construction (211.88 million); technology (173.42 million); SPAC (0.00 million); financial services (104.67 million); property (322.46 million); plantation (62.78 million); REITs (9.78 million); closed/fund (35,300); energy (263.38 million); healthcare (69.41 million); telecommunications and media (34.43 million); transportation and logistics (38.99 million); and utilities (32.72 million).
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