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...
As Brent crude oil prices hit a five and a half year low of nearly US$57 per barrel and the ringgit hit a near five year low of 3.5027 to the dollar, the FBM KLCI also slips 0.09% today and closes at 1,766.830.
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| FBM KLCI closes at 1,766.830 |
There were 382 gainers against 402 decliners, while 304 counters remained unchanged.
In our post earlier on the oil price slump, we were of the opinion that Bursa Malaysia would follow suit as per the declining trend of the oil price as we see a sharp drop.
Today's top gainers: Hong Leong Capital Berhad, British American Tobacco Bhd and Apex Healthcare Bhd.
The top decliners: Multi-Usage Holdings Bhd, Press Metal Bhd, and Aeon Co. Bhd.
Hubline Bhd was the most actively traded stock for today.
While the oil price dropped about 1%, the FBM KLCI only decline slightly at about 0.09%. This is most likely because of the support from the local institutional investors.
The holiday season also contribute to one of the reasons why the market did not react in tandem to falling oil prices.
Regionally, Hong Kong's Hang Seng was down by 1.14%, Japan's Nikkei was 1.57% lower, and South Korea's Kospi was also lower by 0.64%.
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