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...
Market Daily Report: Sentiment turns cautious on Bursa as speculation about national health emergency mounts
KUALA LUMPUR (Oct 23): Share prices have reversed their upward trend seen earlier on Bursa Malaysia today, as speculation has run rife that a national health emergency, which could include the suspension of Parliament, may be declared.
The FBM KLCI, which posted gains at the end of the morning trading session, fell into the negative zone in the afternoon trading session. The benchmark index dropped by 4.16 points or 0.3% to close at 1,494.64.
On the broader market, the ACE Market Index fell by 3.15% or 344.43 points to 10,606.77. The FBM Small Cap Index shed 2.57% or 353.45 points to 13,413.66.
A majority of stocks closed lower today, with 900 decliners against 232 gainers while 425 counters were unchanged.
Selling pressure only got stronger in the final hour of trading before the closing bell at 5pm.
In terms of trading volume, some 6.93 billion shares worth RM4.10 billion were traded today. Top actives were MLabs Systems Bhd, AT Systematization Bhd, and Lambo Group Bhd.
Fraser & Neave Holdings Bhd, MISC Bhd and Public Bank Bhd were top gainers, while top losers were Nestle (Malaysia) Bhd, Carlsberg Brewery Malaysia Bhd and Duopharma Biotech Bhd.
Prime Minister Tan Sri Muhyiddin Yassin chaired a special meeting with the Cabinet today and is said to be meeting with the Yang-di-Pertuan Agong to be conferred with special emergency powers.
News reports have indicated that the prime minister rushed from the Cabinet meeting to Kuantan, Pahang, to meet with the Agong.
It is unclear what these emergency powers will entail.
For the most part today, Asian bourses were largely in the green. The Nikkei 225 was up by 0.18% or 42.32 points at 23,516.59. Hong Kong's Hang Seng was up 0.54% or 132.65 points at 24,918.78 while the Shanghai Composite was down by 1.04% or 34.50 points at 3,278.
Reuters reported that broader Asian stocks reported slim gains on better-than-expected US jobs data.
“Broader Asian stocks recorded slim gains, after better-than-expected US jobs data and signs of progress in talks for a US$2 trillion stimulus deal in Washington supported US equities overnight,” it said.
Source: The Edge
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