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 18): The FBM KLCI fell 0.33% on Wednesday as local institutional investors took profit following two days of strong gains.
According to remisier Jeffry Aziz, the sell-down in the benchmark index today was due to healthy correction with the local bourse experiencing a good run amid a switch from pandemic-themed plays to a recovery-focused theme given the positive sentiment from vaccine newsflow last week.
He also attributed the weakness in the KLCI to the sell-off in blue chip stocks by the Employees Provident Fund (EPF), following the announcement that it is allowing eligible members to take an advance from their Account 1 under a scheme called i-Sinar starting December.
At the closing bell, the local benchmark index was down 5.4 points at 1,604.75, after moving between 1,595.09 and 1,611.58. Market breadth was negative with losers thumping gainers 731 to 473, while 456 counters were unchanged.Trading volume narrowed to 14.41 billion compared with 16.4 billion yesterday. Turnover also fell to RM5.09 billion from RM7.96 billion.
Among the heavyweights, MISC Bhd led the loss as it closed down 51 sen or 6.88% at RM6.90, followed by Dialog Group Bhd, which sank 13 sen or 3.46% to RM3.63.
Other counters linked to Petroliam Nasional Bhd (Petronas) that were in the red today include Petronas Gas Bhd, which lost 14 sen or 0.86% at RM16.18.
Index-linked banking stocks such as CIMB Group Holdings Bhd closed down eight sen or 2.11% to RM3.72. RHB Bank Bhd fell 11 sen or 2.08% to RM5.18, Malayan Banking Bhd eased seven sen or 0.84% to RM8.23, while Hong Leong Bank Bhd sank 12 sen or 0.67% to RM17.78.
Heavyweight glove stock Hartalega Holdings Bhd was not spared from the sell-down, as it closed down 22 sen or 1.5% at RM14.42. It was the seventh-largest loser in the local bourse today.
Meanwhile, Malaysian Pacific Industries Bhd topped the losers list today. Others included Ayer Holdings Bhd, Heineken Malaysia Bhd, Panasonic Manufacturing Malaysia Bhd, Hong Leong Capital Bhd, Malaysia Airports Holdings Bhd and Syarikat Takaful Malaysia Keluarga Bhd.
Top gainers included Batu Kawan Bhd and Chemical Company of Malaysia Bhd (CCM) after news on the acquisition of CCM from Permodalan Nasional Bhd and Amanahraya Trustee.
Other top gainers included Nestle (M) Bhd, Dutch Lady Industries Bhd, Lii Hen Industries Bhd, Kuala Lumpur Kepong Bhd, Time dotCom Bhd and Hong Leong Financial Group Bhd.
AT Systematization Bhd remained as the most actively-traded counter. Its trading volume expanded to 1.42 billion shares, compared with 1.22 billion yesterday. The stock closed lower at 19 sen, down 5.5 sen or 22.45%.
It was followed by NetX Holdings Bhd, Pegasus Heights Bhd, Metronic Global Bhd, Kanger International Bhd, mTouche Technology Bhd, Sanichi Technology Bhd and Thrive Property Group Bhd.
Elsewhere in Asia, Tokyo's Nikkei 225 fell 1.1%, while Seoul's Kospi rose 0.26%. Hong Kong’s Hang Seng Index gained 0.49%, while the Shanghai Stock Exchange Composite Index closed up 0.22%.
CNBC reported that Asia-Pacific markets were mixed by the close on Wednesday. Investors remained cautious despite vaccine hopes, as coronavirus cases continued to surge.
Source: The Edge
Comments
Post a Comment