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 5): The FBM KLCI finished 0.5% lower today, weighed down by declines in Hap Seng Consolidated Bhd, Kuala Lumpur Kepong Bhd (KLK) and Hong Leong Financial Group Bhd (HLFG).
At the closing bell, Malaysia’s benchmark index closed 0.5% or 7.81 points lower at 1,568.13 points.
Rakuten Trade Research vice president Vincent Lau noted that pandemic-related stocks, such as those in the technology and healthcare sectors, are seeing more investor interest than those not directly boosted by the pandemic.
“It is still very much a retail investor-driven market, with news driving its movements,” he noted.
Hap Seng was down by 3.77% or 32 sen at RM8.18, valuing the group at RM20.37 billion.
KLK closed 1.9% or 44 sen lower at RM22.76, giving it a market capitalisation of RM24.6 billion.
As for HLFG, it finished 1.87% or 24 sen lower at RM12.62, valuing it at RM14.48 billion.
Asian markets were mixed today.
The Shanghai Composite posted minor gains of 0.17% or 5.88 points to close at 3,377.57 points, while Hong Kong's Hang Seng finished 0.63% or 155.91 points higher at 25,102.54 points.
Meanwhile, Japan’s Nikkei 225 was down by 0.26% or 58.81 points at 22,514.85 points, and South Korea’s Kospi finished 1.4% or 31.89 points higher at 2,311.86 points.
Reuters reported that investors are counting on more spending in the US when it comes to stimulus packages.
“Markets also latched on to comments from the president of Federal Reserve Bank of San Francisco that the US economy will need more support than initially thought, sending long-term Treasury yields into a downward spiral,” it reported.
Also in the spotlight is gold, which has seen prices shoot up to above US$2,000 an ounce for the first time ever as concerns of market instability, inflation in the US as well as heightened US-China trade tensions weigh on global investor sentiment.
Across Bursa Malaysia as a whole, a total of 15.57 billion shares worth RM8.27 billion were traded. Market breadth was broadly positive with 719 gainers and 380 decliners while 419 counters were unchanged.
Top actives were VSolar Group Bhd, Fintec Global Bhd and Borneo Oil Bhd, while today’s top gainers were Fraser & Neave Holdings Bhd, KESM Industries Bhd and Bursa Malaysia Bhd. Top decliners were Carlsberg Brewery Malaysia Bhd, British American Tobacco Malaysia Bhd and Malayan Banking Bhd.
Investor sentiment is still tilted to smaller cap stocks, with the FBM Small Cap index finishing 426.09 points or 3.07% higher and the FBM ACE index closing up 471.90 points or 4.89%.
Additionally, the Healthcare and Technology indices continue to register gains, rising by 160.63 points or 3.74% and 1.31 points or 2.37% respectively.
Source: The Edge
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