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 30): The FBM KLCI closed down 44.88 points or 2.79% at 1,562.71 today after diving in the final trading hour against a confluence of factors including lower crude oil prices and equity losses as investors weighed Malaysia's corporate financial results amid Covid-19 driven economic weakness.
Across Bursa Malaysia at 5pm, 9.02 billion securities were traded for RM7.71 billion.
Bursa’s Financial Services index fell the most in percentage terms at 3.22% among bourse gauges.
Top declining stocks included KLCI entities Petronas Dagangan Bhd, Public Bank Bhd, Tenaga Nasional Bhd, Petronas Chemicals Group Bhd and Malayan Banking Bhd (Maybank).
Rakuten Trade Sdn Bhd research vice president Vincent Lau told theedgemarkets.com that the drop in the KLCI today might have just been a minor pullback, after a favourable performance throughout the month of November.
"It was probably just the month-end rebalancing of portfolios [by investors]. Market sentiment is still okay, even glove stocks have rebounded.
"Most regional indexes are also trading at a high, so it's unsurprising to see them falling today at the end of the month,” Lau said.
Globally, it was reported today that world shares paused to assess a record-busting month on Monday as the prospect of a Covid-19 vaccine-driven economic recovery next year and yet more free money from central banks eclipsed immediate concerns about the coronavirus pandemic.
"Markets are overbought and at risk of a short term pause,” Reuters quoted Shane Oliver, head of investment strategy at AMP Capital, as saying. "However, we are now in a seasonally strong time of year and investors are yet to fully discount the potential for a very strong recovery next year in growth and profits as stimulus combines with vaccines,” Oliver said.
On commodity markets, it was reported that crude oil prices tumbled on Monday, as investors waited for a decision by producer group OPEC+ whether to extend large output cuts to balance global markets, but vaccine hopes helped keep benchmarks on track to rise more than a fifth in November.
It was reported that January Brent crude futures, which will expire later on Monday, dropped US$1.01, or 2.1%, to US$47.17 a barrel by 0749 GMT.
The more actively traded February Brent contract was at US$47.29 a barrel, down 96 cents, while US West Texas Intermediate crude futures for January fell 86 cents, or 1.9%, to US$44.67 a barrel.
At Bursa today, a glance at the KLCI showed that the 30-stock index started erasing intraday gains in the afternoon as investors weighed companies' quarterly financial results including those of AMMB Holdings Bhd and MAHB, which announced their financials during Bursa’s 12:30pm break today.
Asian equity indices, which ended lower, and the crude oil price drop, could have also precipitated the KLCI’s plunge before Malaysian markets closed at 5pm.
A closer observation showed KLCI stocks, which saw a sharp price drop, included Petronas Chemicals Group Bhd, Maybank and MAHB.
At 5pm, Petronas Chemicals closed down 44 sen or 6.41% at RM6.42, MAHB dropped 33 sen or 5.96% to RM5.21, while Maybank fell 39 sen or 4.7% to RM7.90.
As market observers watched the big drop in the KLCI shortly before trading ended, they would have also noticed Maybank’s share price plunge about 15 minutes before the closing bell today.
Source: The Edge
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