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 27): The FBMKLCI closed higher today, snapping three consecutive days of declines, mainly lifted by Telekom Malaysia Bhd (TM) and Sime Darby Plantation Bhd, which announced strong quarterly results today.
At 5pm, the benchmark index was up 5.2 points or 0.34% at 1,554.78. Market breadth, however, was negative, with 545 losers versus 503 gainers. Across the bourse, a total of 13.71 billion shares worth RM5.56 billion were traded.
TM, which was among Bursa Malaysia’s top gainers of the day, closed 8.97% or 34 sen higher at RM4.13, after some 13.69 million shares were done. Sime Darby Plantation was up 1.18% or six sen higher at RM5.16.
When contacted, Malacca Securities Sdn Bhd head of research Loui Low said the KLCI finished higher amid choppy trading, lifted mainly by TM. He said he continues to favour the telco sector, where he expects to see further upside as it benefits from the new norm of working from home following the COVID-19 outbreak, as well as the anticipated roll-out of 5G services.Besides TM, Nestle (M) Bhd, Kumpulan Powernet Bhd and Kwantas Corp Bhd were among the top gainers of the day. Top decliners, meanwhile, included Supermax Corp Bhd, Carlsberg Brewery Malaysia Bhd, Heineken (M) Bhd and Comfort Gloves bhd.
The day's most active list, notably, continues to be dominated by penny stocks, among which were XOX Bhd, Pegasus Heights Bhd, GPA Holdings Bhd, P.A. Resources and Key Alliance Group Bhd.
Loui believes there is limited upside to be had among penny stocks despite frenzied trading interest, as he believes investors will refocus on fundamentals rather than chase after short-term gains, as the second-quarter result season comes to an end.
Across Asia, Japan's Nikkei 225 shed 0.35%, while South Korea's Kospi sank 1.05%. In China, the Hong Kong Hang Seng Index dipped 0.83% while the Shanghai Stock Exchange Composite Index rose 0.61%.
Reuters reported that markets were mixed on Thursday ahead of US Fed chief Jerome Powell's speech, while geopolitical concerns returned after Beijing fired missiles into the South China Sea and the US sanctioned several Chinese firms linked to the disputed region
Source: The Edge
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