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 (Sept 29): The FBM KLCI closed down 7.76 points or 0.51% at 1,503.90 today, partly due to profit taking in rubber glove manufacturers' shares and as investors continue to weigh the impact of the resurgence in global Covid-19 infections on global markets.
At a glance, the KLCI ended lower after volatile trade as investors appeared to reevaluate Covid-19's economic impact on Malaysia after The World Bank said today its 2020 economic growth forecast for Malaysia, as measured by real gross domestic product (GDP), had been lowered to a contraction of 4.9% from the previously estimated 3.1% decline.
Rakuten Trade Sdn Bhd research vice president Vincent Lau told theedgemarkets.com: “The sentiment was dampened on The World Bank projecting our (Malaysia) GDP to shrink by 4.9% this year and also profit taking on the glove stocks."
It was reported that investors are also looking ahead to the first US presidential debate later today ahead of the US presidential election on Nov 3, 2020.Across Bursa Malaysia at 5pm today, 5.15 billion securities were traded for RM3.59 billion. Decliners led gainers at 612 to 412 respectively.
Lau further commented: “Market still in consolidation mode, expect it to improve.”
Bursa top decliners included rubber glove manufacturers Hartalega Holdings Bhd, Kossan Rubber Industries Bhd, Top Glove Corp Bhd and Supermax Corp Bhd.
Rubber glove manufacturers are among constituents of Bursa's Healthcare Index, which includes pharmaceutical firms and hospital operators.
Hartalega and Top Glove are also members of the 30-stock KLCI. Hartalega's share price closed down 42 sen or 2.41% at RM17 while Top Glove fell 30 sen or 3.42% to RM8.47.
The Healthcare Index ended down 59.04 points or 1.55% at 3,759.05.
Globally, it was reported that European shares slipped on Tuesday as investors awaited the first US presidential debate and eyed progress of a fiscal stimulus package in Washington.
It was reported that investors are weighing the potential impact on the US economy of either the re-election of President Donald Trump or a victory for Democratic presidential nominee Joe Biden.
"Tonight's debate will be critical, since it represents one of the last set-piece opportunities for either candidate to change the contours of the race," Reuters quoted Deutsche Bank analysts as writing in a note.
Source: The Edge
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