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 (Sept 6): Trading on the local bourse remained lacklustre amid lack of strong buying impetus.
The FBM KLCI moved in a tight range between 1,599 points and 1,606 points. It managed to end in positive zone to close at 1,604.47 points — the highest level for the week. The benchmark index was up 0.3%.
Week-on-week, however, the FBM KLCI fell 0.48% from its closing of 1,612.14 on Aug 30.
Across the bourse, a total of 1.65 billion shares were traded, valued at RM1.43 billion. The low trading volume indicates the current poor appetite for Malaysian stocks. Market breadth turned positive, as 364 gainers outnumbered 309 decliners, while 478 counters were unchanged.
The ringgit strengthened to 4.1790 against the greenback at the time of writing, continuing its recovery since touching a three-year low of 4.2203 on Sept 3.
Hong Leong Investment Bank (HLIB) sees that the FBM KLCI has formed a base at the 1,600 level having been through the consolidation phase moving between 1,580 and 1,620 over the past month.
“We still believe that the FBM KLCI has stabilised around the 1,580 — 1,600 levels, where the downside risk could be limited.
“The KLCI may retest the 1,620 level,” said the research house in a note.
The gainers were led by British American Tobacco (Malaysia) Bhd, MISC Bhd and Shangri-La Hotels (M) Bhd, while Nestle (M) Bhd topped the decliners. The most actively traded stock was Priceworth International Bhd .
Similarly, markets in the region rose amid easing trade war concerns. Japan’s Nikkei 225 rose 0.54%, South Korea’s Kospi gained 0.22%, while the Shanghai Composite Index increased 0.46%.
Reuters reported that Asian stocks gained on Friday, joining a global trend as investors took heart from firm US economic data and hopes a meeting between US and Chinese negotiators next month signals an easing in trade tensions.
MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.4%, putting it on track for a 2.2% weekly gain — which would make it the best week since mid-June, it said.
Source: The Edge
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