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...
FBM KLCI: 1,776.22 pts (-0.09pts, -0.01%)
The FBM KLCI (-0.01%) ended marginally lower after key index recouped most of its intraday losses amid the stronger-than-expected 2Q2017 GDP data that grew 5.8% Y.o.Y. Market breadth was negative with 357 winners compared to 472 losers, while 374 stocks closed flattish. Construction stocks like Econpile (+11.0 sen), Crest Builder (+8.0 sen) and Sunway Construction (+3.0 sen) continue to outperform its peers.
Top 3 Active stocks:
UMWOG (5243): RM0.33 (+2.0 sen)
MTOUCHE (0092): RM0.275 (-2.5 sen)
JAG (0024): RM0.145 (unch)
Volume: 1.45 bln (100-day avg vol: 2.54 bln)
Value: RM1.58 bln
Market Breadth: ⬆️:357 ⬇️:472
Crude palm oil: RM2,679 (+RM21)
Dow Futures: 21,711 pts (-22 pts)
Source: Bloomberg, M+ Online
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