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 24): The FBM KLCI underperformed the broader market to close 8.54 points or 0.54% lower today, mainly dragged by Petronas Chemicals Group Bhd (PetChem) and banking stocks.
Despite opening in the positive territory, the index stood in the red zone for most of the trading session. It closed at 1,568.58 after moving between 1,567.10 and 1,581.27.
TA Securities Holdings Bhd senior technical analyst Stephen Soo said most of the blue chips remained in consolidation. “In terms of performance [today], it has underperformed compared with the broader market,” Soo told theedgemarkets.com.
The FBM ACE index was up 23.94 points or 0.22% at 10,945.82, while the Bursa Malaysia Small Cap Index grew 154.02 points or 1.12% to 13,881.35.Soo said banks are affected by the recent news that cruise ship operator Genting Hong Kong Ltd had suspended payments to creditors. "There are probably concerns on writebacks," he said.
The company was scheduled to hold its first creditors’ meeting today to restructure its debts.
Soo said the KLC’s support level will be at 1,560 (50-day moving average) and 1,539, with the resistance level at 1,590 and 1,600 points.
Among the index’s constituents, PetChem was the biggest loser as it declined 20 sen or 3.25% to close at RM5.95, followed by IHH Healthcare Bhd and Public Bank Bhd.
IHH closed 17 sen or 3.05% lower at RM5.41, while Public Bank slipped 32 sen or 1.85% to RM16.98.
Besides banks, other top laggards among the blue chips included rubber glove makers Hartalega Holdings Bhd (-1.35%) and Top Glove Corp Bhd (-0.36%) as well as Genting Bhd (-0.84%) and Genting Malaysia Bhd (-0.45%).
Total volume on the broader market was 9.95 billion shares worth RM5.77 billion. Gainers led losers by 645 to 504, while 376 counters remained unchanged.
Across Asia, Japan's Nikkei 225 grew 0.28%, while Hong Kong’s Hang Seng was up 1.74% and South Korea's Kospi rose 1.1%.
Reuters wrote that Asian shares advanced for a second straight session, underpinned by coronavirus hopes after US regulators authorised the use of blood plasma from recovered patients as a treatment option.
Source: The Edge
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