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, June 27 (Bernama) -- Bursa Malaysia closed lower today after notching modest gains yesterday, dragged by the weakness in selected oil and gas heavyweights, said an analyst.
Apex Securities Bhd head of research Kenneth Leong said the weakness was largely in tandem with the mostly negative performance across regional markets following the softer-than-expected China industrial profit data.
At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.38 per cent or 6.01 points to 1,584.94 from Wednesday's close of 1,590.95.
The benchmark index opened 0.58 of-a-point firmer at 1,591.53 and moved between 1,582.31 and 1,592.26 throughout the trading session.
On the broader market, decliners thumped gainers 804 to 320, with 455 counters unchanged, 862 untraded and 73 others suspended.
Turnover decreased to 4.23 billion units worth RM3.13 billion from yesterday's 4.73 billion units worth RM3.22 billion.
Leong said technically, the FBM KLCI has formed a bearish candle as the key index erased all its gains in the previous sessions.
"For now, we expect the downward bias consolidation to extend with the key index approaching the 1,580 support level.
"Meanwhile, the immediate resistance is located at 1,600, followed by 1,630," he told Bernama.
Leong expects uncertainties to prevail ahead of the release of the United States (US) personal consumption expenditure (PCE) data, which is the US Federal Reserve’s (Fed) preferred inflation gauge.
Apart from that, the Chicago Purchasing Managers Index (PMI) and Michigan consumer sentiment data in the US are also set to be released later tonight.
Meanwhile, UOB Kay Hian Wealth Advisors head of investment research Mohd Sedek Jantan opined that investors are treading cautiously, adopting a wait-and-see approach to safeguard current profits until the PCE data is released.
Currently, the Fed Nowcast inflation data indicates slow improvement in the headline PCE for May 2024, standing at 2.62 per cent compared to April's actual figure of 2.65 per cent.
"Slower progress in the PCE deflator data suggests the Fed may maintain interest rates at least through another meeting session," he told Bernama.
Back home, heavyweights Maybank was flat at RM9.96, Tenaga Nasional added two sen to RM13.94, Public Bank eased one sen to RM4 and both CIMB and IHH Healthcare climbed one sen each to RM6.77 and RM6.28, respectively.
As for the most active counters, MY E.G. gave up five sen to 97 sen, YNH Property dropped 11 sen to 49.5 sen, Dagang NeXchange slipped 2.5 sen to 44 sen, V.S Industry perked up one sen to RM1.25, and SBH Marine was up two sen to 34 sen.
On the index board, the FBM Emas Index shaved off 49.91 points to 12,160.84, the FBMT 100 Index fell 44.80 points to 11,747.54, the FBM Emas Shariah Index decreased 71.30 points to 12,496.24, the FBM 70 Index declined 68.71 points to 17,720.15, and the FBM ACE Index slipped by 34.33 points to 5,688.98.
Sector-wise, the Financial Services Index sank 24.91 points to 17,420.32, the Energy Index fell 10.37 points to 949.62, the Industrial Products and Services Index edged down 1.59 points to 195.25, and the Plantation Index shed 37.11 points to 6,950.82.
The Main Market volume declined to 2.36 billion units valued at RM2.74 billion from 2.50 billion units valued at RM2.74 billion on Wednesday.
Warrants turnover dwindled to 1.05 billion units worth RM124.38 million compared with 1.40 billion units worth RM180.17 million previously.
The ACE Market volume narrowed to 816.94 million shares valued at RM273.74 million against 822.4 million shares valued at RM295.02 million yesterday.
Consumer products and services counters accounted for 386.91 million shares traded on the Main Market; industrial products and services (490.04 million), construction (196.86 million); technology (415.54 million); SPAC (nil); financial services (82.39 million); property (331.52 million), plantation (32.15 million), REITs (16.48 million), closed/fund (8,400), energy (142.92 million); healthcare (59.96 million); telecommunications and media (72.33 million); transportation and logistics (71.18 million); utilities (55.79 million); and business trusts (2.7 million).
Source: Bernama
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