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: KLCI advances cautiously ahead of Budget 2021 vote as crude oil price rise offers fillip to energy index
KUALA LUMPUR (Nov 23): The FBM KLCI closed up 3.73 points or 0.23% at 1,597.48 today to trail Bursa Malaysia’s Energy index’s 5.55% gain as the Brent crude oil price rose past the US$45 (RM184.07) per barrel level following news of successful Covid-19 vaccine trials.
The KLCI’s gain was, however, limited by investors' caution ahead of Malaysia's parliamentary voting on the proposed Budget 2021 on Wednesday (Nov 25), according to analysts.
Malacca Securities Sdn Bhd head of research Loui Low told theedgemarkets.com that higher crude oil prices lifted sentiment on the local bourse and helped the KLCI close in positive territory today.
"The gain in the KLCI, however, was seen capped as local investors stayed wary as they were waiting for the final result of the Budget 2021 vote this week," he said.Across Bursa today, 9.43 billion securities were traded for RM4.52 billion as oil and gas (O&G)-related shares rose among the top gainers.
Petronas Dagangan Bhd topped the gainers' list after its share price closed up RM2.48 or 12.64% at RM22.10.
Hengyuan Refining Company Bhd was up 32 sen or 10.22% at RM3.45, while Petron Malaysia Refining & Marketing Bhd gained 23 sen or 6.07% to RM4.02.
Notable gainers included Asia Brands Bhd after the lingerie and baby product retailer’s share price closed up 30 sen or 61.22% at its intraday high of 79 sen.
Asia Brands’ share price rose today after the company announced last Friday that its net profit jumped to RM5.35 million for the second quarter ended Sept 30, 2020 (2QFY21) from RM1.32 million a year earlier. For the first half ended Sept 30, 2020 (1HFY21), Asia Brands said its cumulative net profit climbed to RM9.58 million from RM5.91 million a year earlier.
Globally, it was reported that crude oil prices extended gains today as traders eyed a recovery in crude demand, thanks to successful coronavirus vaccine trials, although prices were contained by renewed lockdowns in several countries.
It was reported that sentiment was also bolstered by hopes that the Organization of the Petroleum Exporting Countries (OPEC), Russia and other producers, a group known as OPEC+, will keep crude output in check. It was reported that Brent crude futures were 21 cents, or 0.5%, higher at US$45.17 a barrel by 0436 GMT, while US West Texas Intermediate (WTI) crude had gained 10 cents, or 0.2%, to US$42.52 a barrel.
Source: The Edge
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