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 13): The FBM KLCI closed up 19.78 points or 1.27% at its intraday high of 1,576.42 today, lifted partly by banking and rubber glove manufacturers’ share price rise as the broader market took cue from US stocks’ overnight gain.
Today, trade volume across Bursa Malaysia however ended sharply lower at 11.67 billion securities worth RM4.97 billion.
Maybank Investment Bank Bhd remisier Jeffry Azizi Jaafar told theedgemarkets.com that the news on the planned inclusion of rubber glove manufacturers Kossan Rubber Industries Bhd and Supermax Corp Bhd into the MSCI Global Standard Indexes' MSCI Malaysia Index today lifted share prices of KLCI-linked glove manufacturers Hartalega Holdings Bhd and Top Glove Corp Bhd.
MSCI said in a statement yesterday that changes in constituents for the MSCI Global Standard Indexes would take place as of the close of Aug 31.At Bursa today, Top Glove's share price closed up 50 sen or 2.04% at RM25 while Hartalega rose 44 sen or 2.73% to RM16.56.
Top Glove and Hartalega emerged among Bursa top gainers, which included Public Bank Bhd.
Public Bank’s share price closed up 40 sen or 2.3% at RM17.80.
Jeffry Azizi said: "Other positive catalysts for the market today was a stronger ringgit on the back of higher oil prices coupled with a positive overnight close on Wall Street.”
Across Bursa today, trade volume slumped to 11.67 billion securities from yesterday’s 19.16 billion securities worth RM7.99 billion.
Globally, it was reported that Japanese stocks soared to a six-month peak and the US dollar was under pressure today as investors picked positives out of recent economic data and bet on China and the US sticking with their trade deal at a crucial weekend meeting.
Overnight yesterday in US markets, the Dow Jones Industrial Average rose 1.03% to end at 27,971.9 points, the S&P 500 gained 1.38% to 3,379.81 while the Nasdaq Composite climbed 2.1% to 11,009.76.
In Malaysia tomorrow, investors will closely follow the announcement on Malaysia’s 2020 second quarter gross domestic product (GDP) numbers.
Malaysia’s GDP grew 0.7% in 2020’s first quarter from a year earlier, according to Bank Negara Malaysia’s statement on May 13.
Source: The Edge
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