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...
Market Daily Report: Bursa Malaysia Slips On Cautious Sentiment Ahead Of Fed Meeting, Inflation Print
KUALA LUMPUR, June 12 (Bernama) -- Bursa Malaysia ended marginally lower on Wednesday on cautious sentiment ahead of the US Federal Reserve’s (Fed) decision on interest rates and inflation data due later today.
At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) slid 2.54 points to its intraday low of 1,608.95 compared with 1,611,49 at Tuesday’s close.
The FBM KLCI opened 5.14 points higher at 1,616.63 and hit an intraday high of 1,618.99 in the early morning session.
On the broader market, decliners outpaced gainers 758 to 550, while 468 counters were unchanged, 625 untraded, and nine others suspended.
Turnover expanded to 7.59 billion units worth RM5.28 billion from Tuesday's 6.98 billion units worth RM5.12 billion.
A dealer said the local market performance mirrored the global markets as investors focused on the outcome of the Federal Open Market Committee meeting and the US Consumer Price Index (CPI) to be released on Wednesday.
The US CPI print will come on the heels of China's inflation data released earlier today which signals weak demand.
China’s statistics bureau reported that the increase in consumer prices was weaker than expected at 0.3 per cent from a year ago in May, against a consensus estimate of a 0.4 per cent increase.
He said the market expects the Fed to keep rates unchanged as inflation has proven to be sticky so far this year.
Back home, investors also took profit from the earlier session rally.
Heavyweights Press Metal led laggards, falling eight sen to RM5.83, MISC was down 11 sen to RM8.51, Public Bank eased two sen to RM4.06, and CelcomDigi and IHH lost three sen to RM3.78 and RM6.22 respectively.
As for the active counters, DNeX gained two sen to 49.5 sen, SNS Network added 12 sen to 87.5 sen, AT Systematization rose two sen to 23 sen, Harvest Miracle and Sapura Energy eased half-a-sen to 10 sen and 4.0 sen respectively, and JAKS Resources lost one sen to 18 sen.
On the index board, the FBM Emas Index garnered 9.37 points to 12,382.66, the FBMT 100 Index gained 14.25 points to 11,953.46 and the FBM Emas Shariah Index increased 38.22 points to 12,753.84.
The FBM 70 Index jumped 155.05 points to 18,133.46 and the FBM ACE Index was 13.27 points lower at 5,735.66.
Sector-wise, the Financial Services Index shed 37.70 points to 17,553.68, the Industrial Products and Services Index slipped 0.61 of-a-point to 199.13 and the Energy Index lost 11.44 points to 979.30.
The Plantation Index advanced 13.39 points to 7,064.15.
The Main Market volume improved to 4.27 billion units worth RM4.23 billion from 4.10 billion units worth RM4.38 billion on Tuesday.
Warrants turnover surged to 1.04 billion units valued at RM121.33 million from 991.98 million units valued at RM116.75 million yesterday.
The ACE Market volume climbed to 2.27 billion shares worth RM921.62 million from 1.88 billion shares worth RM613.17 million previously.
Consumer products and services counters accounted for 563.72 million shares traded on the Main Market, industrial products and services (867.50 million), construction (465.58 million), technology (1.05 billion), SPAC (nil), financial services (106.76 million), property (538.97 million), plantation (27.15 million), REITs (17.87 million), closed/fund (41,500), energy (246.72 million), healthcare (87 million), telecommunications and media (78.26 million), transportation and logistics (143.42 million), utilities (77.95 million), and business trusts (553,400).
Bursa Malaysia announced that trading will be closed next Monday, June 17, for Hari Raya Aidiladha and will resume on Tuesday, June 18.
Source: BernamaBernama
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