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 8): The FBM KLCI closed up 2.94 points or 0.19% at 1,519.32 today after a final hour spike helped the index erase earlier losses, which pushed the equity gauge below 1,500 amid a confluence of factors including lower crude oil prices and anticipation of Bank Negara Malaysia's (BNM) interest rate decision this week.
Today, the KLCI closed higher at 5pm after a spike, helped by the sharp rise in share prices of constituents including Tenaga Nasional Bhd and Malayan Banking Bhd (Maybank) in the final trading hour, as share prices of rubber glove manufacturers fell.
Across Bursa Malaysia at 5pm, 9.04 billion securities were traded for RM4.57 billion.
There were 867 decliners versus 309 gainers.
The KLCI finished up after falling to its intraday low at 1,494.19, as KLCI-linked rubber glove manufacturers Top Glove Corp Bhd and Hartalega Holdings Bhd’ share prices slumped.
Inter-Pacific Securities Sdn Bhd Victor Wan said the KLCI’s consolidation trend is ongoing, as market interest continues to wane after the extended rally seen over the past few months.
“We will likely see more of the same trend in the near term, with profit taking and selling activities to continue,” Wan told theedgemarkets.com.
Today, Tenaga’s share price closed up 26 sen or 2.35% at RM11.32, while Maybank rose 24 sen or 3.31% to RM7.50.
Top Glove’s share price ended down 64 sen or 7.73% at RM7.64, while Hartalega fell 40 sen or 2.86% to RM13.60.
Rubber glove manufacturers are also constituents of Bursa’s healthcare index, which includes hospital operators and pharmaceutical companies.
The healthcare index closed down 4% to become the top percentage decliner among Bursa indices.
Lower crude oil prices and the anticipation of BNM’s interest rate decision on Thursday (Sept 10) are deemed crucial factors affecting broader market sentiment today.
In general, central banks’ interest rate decisions affect equity sentiment, as investors weigh the impact of such decisions on industries such as the banking and property sectors.
Across world crude oil markets today, it was reported oil prices fell on Tuesday amid concerns that a possible rise in Covid-19 cases following the US Labor Day long weekend, which also marks the end of the peak US driving season, could squeeze demand for fuel.
It was reported that coronavirus cases rose in 22 of the 50 US states, a Reuters analysis showed, on the holiday weekend traditionally filled with gatherings to mark the end of summer.
"At the same time, cases are flaring up in India and Britain. US West Texas Intermediate (WTI) crude futures fell 76 cents or 1.9% to US$39.01 per barrel at 0433 GMT, playing catch-up with a drop in Brent prices overnight.
"Brent crude futures eased 8 cents or nearly 0.2%, to US$41.93 a barrel, after falling 1.5% on Monday. Brent dropped on Monday after Saudi Arabia's Aramco, the world's top oil exporter, cut the October official selling prices for its Arab light crude, seen as a sign demand growth may be stuttering as Covid-19 cases flare up around the world,” Reuters reported.
Source: The Edge
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