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 (Nov 17): The FBM KLCI extended its gains for the second consecutive day as investors, particularly institutional funds, were rejigging their portfolios in view of the positive news flow of Covid-19 vaccines.
The benchmark index climbed above the 1,600-point level to close at 1,610.15, its highest since end-July, up 10.49 points or 0.66% for the day as market sentiment was boosted by the positive news.
Trading volume across the board was above the 16 billion mark for the second day in a row. Today’s volume was 16.4 billion shares. Turnover ballooned to RM7.96 billion from RM6.71 billion yesterday.
Gainers outnumbered losers at 627 to 567, while 554 counters closed unchanged.
Malacca Securities Sdn Bhd senior analyst Kenneth Leong told The Edge that the benchmark index went up further following Moderna Inc’s announcement that its experimental Covid-19 vaccine was 94.5% effective in preventing infection based on interim late-stage data. This reinforced hope that a vaccine could be available sooner than later.
Banking stocks continued to attract buying interest. Hong Leong Bank Bhd (HLB) gained 84 sen or 4.92% to RM17.90, Public Bank Bhd increased 42 sen or 2.27% to RM18.90, and Hong Leong Financial Group Bhd went up 34 sen or 2.17% to RM16.
Meanwhile, RHB Bank Bhd rose 11 sen or 2.12% to RM5.29, Malayan Banking Bhd (Maybank) climbed 16 sen or 1.97% to RM8.30, and CIMB Group Holdings Bhd rose three sen or 0.8% to RM3.80.
Bursa Malaysia's Financial Services Index was the second highest among the bourse’s indices today, shooting up 311.81 points or 2.2% to 14,455.69.
Meanwhile, index-linked glove counter Top Glove Corp Bhd fell 20 sen or 2.78% to a two-month low of RM7. Selling accelerated for the counter after it was reported that its workers’ dormitories in Klang would be put under the enhanced movement control order (EMCO) for two weeks, starting from today.
However, its peer Hartalega Holdings Bhd reversed its downtrend today, with its share price going up 14 sen or 0.97% to RM14.64.
GETS Global Bhd topped the loser list today, skidding 86 sen or 21.7%, after Bursa advised investors to exercise caution in trading its shares.
AT Systematization Bhd remained as the most actively traded. However, its trading volume shrank to 1.22 billion shares, compared with 2.06 billion yesterday. The stock closed lower at 24.5 sen, down 1.5 sen or 5.77%.
Among the most traded counters were mTouche Technology Bhd, Thrive Property Group Bhd, Lambo Group Bhd, Pegasus Heights Bhd, Metronic Global Bhd, PDZ Holdings Bhd, Pasukhas Group Bhd and EA Holdings Bhd.
Elsewhere in Asia, Tokyo's Nikkei 225 rose 0.42%, while Seoul's Kospi fell 0.15%. Hong Kong’s Hang Seng Index inched up 0.13%, while the Shanghai Stock Exchange Composite Index closed down 0.21%.
Reuters reported that Asian stocks held gains and moved tentatively further into record positive territory today after US benchmarks were pepped up by news of a second promising coronavirus vaccine, though futures indicated that the rally could be stalled in European hours.
Source: The Edge
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