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, Aug 26 (Bernama) -- Bursa Malaysia ended on a firm note today in tandem with most regional peers, buoyed by the US Federal Reserve’s (Fed) remarks on Friday which indicated a lean towards a more accommodative monetary policy.
At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.22 points or 0.20 per cent to 1,638.96 from Friday's close of 1,635.74.
The local market was boosted by strong gains in most index-linked counters led by Malayan Banking Bhd (Maybank), Tenaga Nasional Bhd and Press Metal Aluminium Holdings Bhd.
These three counters contributed 4.998 points to the gains in the composite index, with Maybank rising 10 sen to RM10.54, Tenaga adding 20 sen to RM13.92 and Press Metal gaining seven sen to RM5.21.
The index opened 4.08 points higher at 1,639.82 and moved between 1,634.72 and 1,643.95 throughout the day.
On the broader market, however, losers led gainers by 578 to 506, with 434 counters remaining unchanged, 1,008 untraded, and 17 suspended.
Turnover slipped to 2.82 billion units valued at RM2.62 billion from 3.53 billion units valued at RM2.80 billion last Friday.
Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng told Bernama that the key regional indices largely advanced on the back of the US rate cut hopes as the US dollar and US bond yields retreated in anticipation of upcoming inflation data in the US and Europe.
Regionally, Singapore's Straits Times index increased 0.24 per cent to 3,396.03, Hong Kong's Hang Seng Index advanced 1.06 per cent to 17,798.73, China’s SSE Composite Index rose 1.15 per cent to 2,855.52, while Japan’s Nikkei fell 0.66 per cent to 38,110.22.
Meanwhile, Thong said the People’s Bank of China held the one-year medium-term lending facility (MLF) rate at 2.30 per cent on Monday, after a 20-basis point cut in July.
“This decision was delayed from the typical mid-month timing as China's central bank aims to reduce the MLF rate's influence in favour of short-term rates to steer the market.
“On the domestic front, we remain cautiously optimistic despite some improvements in market sentiment, acknowledging that investor expectations can vary,” he added.
Apex Securities Bhd head of research Kenneth Leong said the FBM KLCI started the week on a buoyant note as the key index cheered the dovish remarks from Fed chairman Jerome Powell last week over the interest rate cut that will take place in September.
“Looking ahead, we expect the upside bias tone may remain on the cards with the key index stabilising above the 1,600-point level.
“The key focus remains on the ongoing flurry of corporate earnings releases, while the US Consumer Confidence data that will be released tomorrow night will be monitored,” he said.
Leong said technically, the FBM KLCI has formed a Doji Candle to extend its short-term consolidation pattern.
The near-term resistance is located at 1,660 points and support is pegged at 1,615 points, he added.
Among other heavyweights, Public Bank and IHH eased two sen each to RM4.51 and RM6.31 respectively, and Hong Leong Bank dipped eight sen to RM20.10, while CIMB was flat at RM7.89 and Petronas Chemicals added two sen to RM5.73.
As for the actives, Elridge Energy rose 4.5 sen to 45 sen, Cape EMS and Velesto were half-a-sen higher at 38.5 sen and 21.5 sen respectively, WCT Holdings surged 11.5 sen to RM1.07, and MYEG gained one sen to 90 sen.
On the index board, the FBM Emas Index put on 18.50 points to 12,352.31, the FBMT 100 Index increased 19.07 points to 12,032.52, the FBM Emas Shariah Index firmed 30.56 points to 12,292.61, and the FBM 70 Index improved 11.15 points to 17,725.58.
However, the FBM ACE Index slipped 8.52 points to 5,207.17.
Sector-wise, the Plantation Index climbed 22.21 points to 7,222.38, the Energy Index garnered 13.91 points to 935.44, the Industrial Products and Services Index edged up 1.29 points to 182.89, and the Financial Services Index rose 20.21 points to 19,040.87.
The Main Market volume dwindled to 1.49 billion units worth RM2.35 billion from 1.93 billion units worth RM2.46 billion last Friday.
Warrants turnover declined to 889.14 million units valued at RM118.08 million from 938.77 million units valued at RM99.32 million previously.
The ACE Market volume dropped to 435.91 million shares worth RM150.23 million from 660.10 million shares worth RM238.33 million on Friday.
Consumer products and services counters accounted for 177.05 million shares traded on the Main Market, industrial products and services (267.23 million), construction (149.95 million), technology (261.94 million), SPAC (nil ), financial services (96.96 million), property (195.34 million), plantation (20.11 million), REITs (19.86 million), closed/fund (23,100), energy (155.08 million), healthcare (44.37 million), telecommunications and media (35.36 million), transportation and logistics (35.78 million), utilities (37.51 million), and business trusts (386,900).
Source: Bernama
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