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 10): The FBM KLCI pared some losses to close 6.48 points or 0.41% lower to 1,571.66 as profit taking was seen across glove counters today. The benchmark index had earlier fallen to a low of 1,558.07.
Trade volume swelled to 19.76 billion, the second highest since crossing the 20-billion mark last Friday to hit 26.65 billion. Total value of shares traded today was RM7.55 billion.
Despite negative trading throughout the day, there were 618 gainers and 449 losers in the market.
Maybank Investment Bank Bhd remisier Jeffry Azizi Jaafar noted that Hartalega Holdings Bhd and Top Glove Corp Bhd led the decline of the benchmark index today.Hartalega fell 78 sen or 4.08% to RM18.36, while Top Glove ended 94 sen or 3.34% lower at RM27.20.
“The reason is because investors were eyeing profit taking as both stocks and other glove counters make a correction today. The previous rally has been strong, which lasted the past one to two weeks and most of the glove counters [achieved a] new high price. A new Covid-19 wave was the main catalyst behind the last round of the said rally,” he told theedgemarkets.com.
IHH Healthcare Bhd and Telekom Malaysia Bhd also fell, with IHH closing 16 sen or 2.91% lower to RM5.34, and Telekom closing 11 sen or 2.84% lower to RM3.77.
Across the region, South Korea led gains across Asia's emerging stock markets on Monday as an improvement in Chinese factory data calmed nerves over a ramp-up in US-China tensions ahead of trade talks at the end of the week, said Reuters.
South Korea’s Kospi index rose 1.48%, while Shanghai’s composite index climbed 0.75%. The Hang Seng, however, fell 0.63% and Japan’s Nikkei 225 dropped 0.39%.
Source: The Edge
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