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 decliners near 1,000 as investors weigh Malaysia’s worst quarterly economic performance since 1998
KUALA LUMPUR (Aug 14): The number of Bursa Malaysia decliners rose sharply to almost 1,000 today as investors weighed Malaysia’s worst quarterly economic performance since 1998 and as world markets pulled back after China announced a disappointing set of economic indicators.
All Bursa indices closed lower at 5pm today. Worst hit was the Healthcare Index after the gauge fell 201.62 points or 5.09% to 3,762.49 as investors sold shares of rubber glove manufacturers.
Meanwhile, the FBM KLCI ended down 11.83 points or 0.75% at 1,564.59.
Across Bursa today, there were 981 decliners versus 213 gainers. A total of 10.46 billion securities were traded for RM5.15 billion.Yesterday, there were 491 decliners versus 607 gainers.
Today, news reports, quoting Bank Negara Malaysia and the Statistics Department, said Malaysia’s economy, as measured by gross domestic product (GDP), contracted 17.1% in the second quarter of 2020 (2Q20) from a year earlier mainly due to the Movement Control Order (MCO) to stem the spread of the COVID-19 pandemic.
It was reported that the GDP performance for 2Q20 was the worst ever recorded by the nation since the 11.2% on-year contraction during the fourth quarter of 1998.
“Investors are digesting the numbers,” Hong Leong Investment Bank Bhd senior analyst Ng Jun Sheng told theedgemarkets.com today.
Bursa top decliners included rubber glove manufacturers Supermax Corp Bhd, Top Glove Corp Bhd and Kossan Rubber Industries Bhd.
Supermax’s share price closed down RM1.56 or 8.01% at RM17.92, Top Glove fell RM1.18 or 4.72% to RM23.82 while Kossan was 70 sen or 4.64% lower at RM14.40.
World markets took cue from China's economic data today. It was reported today that China's industrial output grew 4.8% in July from a year earlier, in line with June's growth but less than a forecast 5.1% rise.
It was reported that retail sales dropped 1.1% on year, missing predictions for a 0.1% rise and following June's 1.8% fall.
"Asian markets pulled back on Friday following the disappointing set of economic indicators, which raised concerns about the fragility of China's emergence from COVID-19,” Reuters reported.
Source: The Edge
Comments
Post a Comment