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 13): The FBM KLCI erased most of its earlier losses to end the day on a flat note as investors engaged in stock picking in sector rotational play, especially in the glove stocks after the recent sell-down, and cheered the smaller-than-expected July-Sept Gross Domestic Product (GDP) contraction.
At 5pm, the benchmark index closed 1.09 points or 0.07% lower at 1,589.69 points. The FBM KLCI opened lower at 1,588.38 this morning and fell by as much as 18.78 points or 1.18% to 1,572 points ahead of the announcement of third quarter GDP announcement.
However, it started to recover slowly by one point, reentering positive territory at 1,592.19 after investors started to snap up index-linked banking stocks such as Malayan Banking Bhd and CIMB Group Holdings Bhd, heavyweight glove counters Top Glove Corp Bhd and Hartalega Holdings Bhd, Press Metal Aluminium Holdings Bhd and Genting Bhd.
Among the 30 FBM KLCI constituents, 11 stocks were higher, with two stocks traded flat and 17 stocks lower. Gains were led by Press Metal, which jumped 22 sen or 3.66% to RM6.23, followed by banking counters, namely Maybank, which closed up 13 sen or 1.67% to RM7.93 and CIMB Bank which rose five sen or 1.47% to RM3.44.
Glove counters reversed their fortunes today with Top Glove closing higher at RM7.78 after rising eight sen or 1.04% while Hartalega rose two sen or 0.13% to RM15.38.
Genting also closed up two sen or 0.53% to RM3.79. Meanwhile Sime Darby Bhd and Sime Darby Plantation Bhd also ended higher todayclo; they closed up three sen or 1.25% to RM2.43 and one sen or 0.19% to RM5.21, respectively.
Market breadth was mixed, with 605 gainers versus 474 losers while 552 remained unchanged.
Trading volume and turnover narrowed to 12.58 billion shares and RM4.6 billion, posting a 24% and 22% contraction respectively compared with 16.56 billion shares worth RM5.88 billion posted yesterday.
Bank Negara Malaysia announced that the GDP contracted by 2.7% in 3Q2020, a marked improvement on the —17.1% slump in the 2Q2020. The improved performance largely reflected the impact of the reopening of the economy after the Movement Control Order and better external demand conditions.
The contraction was smaller than the 3.2% decline forecast by economists in a Reuters poll.
TA Securities Holdings Bhd technical analyst Steven Soo told theedgemarkets.com that investors in the market were engaging in rotational play with strong bargain hunting going on for blue chips, especially in the recently battered glove stocks, which provided some support for KLCI today.
Amid strong gains seen in KLCI for the past two weeks following market optimism over the vaccine news, he expects the market to consolidate next week on some external weakness, citing that the rally is “overdone” at this stage.
“The resurgence of the COVID-10 pandemic in Europe and the US may weigh down the market sentiment which could cap the upside in the local market,” he added.
On the technical front, Soo said the key support for the KLCI is 1,550, followed by 1,537 and 1,520, while the immediate resistance is 1,600 and 1,618.
AT Systematization Bhd topped the most actively traded list again for seven consecutive days. However, its trading volume shrank to 1.95 billion shares compared with 2.62 billion yesterday. Its share price closed higher at 25.5 sen, after adding 3.5 sen or 15.91%.
Salcon Bhd also emerged in the most actively traded list after the group jumped into the glove market bandwagon yesterday. However, the move by the water and wastewater engineering firm received lukewarm response from investors, with its share price closing down 4.5 sen or 11.84% to 33.5 sen today.
Other actively traded stocks included Metronic Global Bhd, Nexgram Holdings Bhd, Xidelang Holdings Ltd and Priceworth International Bhd.
Shares price of Hong Leong Capital Bhd hit limit today when it resumed trading after being suspended for more than five years. It closed down RM2.05 or 22.4% at RM7.10, making it the top loser on the local bourse.
Other index-linked counters in the top 10 losers' list are Petronas Dagangan Bhd, Hap Seng Consolidated Bhd and Hong Leong Bank Bhd.
Among the top gainers' list, Malaysian Pacific Industries Bhd ranked first after rising 50 sen or 2.17% to RM23.50. This was followed by Euro Holding Bhd, which added 48 sen or 19.2% to RM2.98 and Kumpulan Powernet Bhd, which gained 31 sen or 7.58% to RM4.40.
Elsewhere in Asia, Tokyo's Nikkei 225 fell 0.53% while Seoul's Kospi rose 0.74%. Hong Kong’s Hang Seng Index inched down 0.05% while the Shanghai Stock Exchange Composite Index was down 0.86%.
Reuters reported that stocks in Asia fell on Friday, following from selloffs in the United States and Europe as investors feared the economic impact of an accelerating rise in coronavirus infections.
Source: The Edge
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