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 11): The FBM KLCI closed down 0.32% or 4.99 points at 1,570.08 points on profit-taking as market optimism about the progress of a COVID-19 vaccine faded, after the index yesterday posted the strongest gains since March.
Yesterday, the FBM KLCI surged 3.33% or 50.75 points to an over two-month high of 1,575.07 today — the biggest single-day gain since March 20 when the benchmark rocketed by 6.85%.
MIDF Research head of research Imran Yassin Md Yusof told theedgemarkets.com that the selldown in the benchmark index today was due to profit-taking activities as well as investors realising that it will take time for a vaccine to be delivered to the public.
According to him, the selldown was unexpected as he thought the positive sentiments from the development of Pfizer’s COVID-19 vaccine will continue to boost the market.
The benchmark index stayed largely negative throughout the day, ranging between 1,550.44 points and 1,572.69 points.
The brisk trading saw double-digit declines in trading volume and value.
Some 10.19 billion shares were traded today, down 17.22% compared with yesterday's trading volume of 12.31 billion.
Trading value was lower by almost 30% to RM5.95 billion from RM8.45 billion recorded yesterday.
On the broader market, share prices were mixed. There were 627 gainers versus 523 losers, while 504 counters were unchanged.
The heavyweights that dragged down the benchmark index included MISC Bhd, after it fell 32 sen or 4.44% at RM6.89, Sime Darby Bhd (down 10 sen or 4.07% to RM2.36) and IHH Healthcare Bhd (20 sen or 3.54% to RM5.45).
The top losers included Nestle (Malaysia) Bhd, which fell RM1 or 0.71% to RM140, followed by PPB Group Bhd (down 24 sen to RM18.88), Aeon Credit Service (M) Bhd (shed 36 sen to RM10.34), Hartalega Holdings Bhd (declined 20 sen to RM15.50) and Vitrox Corp Bhd (fell 30 sen to RM15).
AT Systematization Bhd topped the most actively traded list again. Its trading volume surged to 2.83 billion shares compared with 1.67 billion yesterday. Its share price closed higher at 27 sen, adding eight sen or 42.11%.
Other actively traded stocks included DGB Asia Bhd, Fintec Global Bhd, AE Multi Holdings Bhd, Metronic Global Bhd, P.A. Resources Bhd and Pasukhas Group Bhd.
Among KLCI-linked banking stocks, Public Bank Bhd, Hong Leong Bank Bhd, Hong Leong Financial Group Bhd (HLFG), RHB Bank and Malayan Banking Bhd continued their positive momentum today.
However, CIMB Group Holdings bucked the trend, closing down eight sen or 2.37% to RM3.30.
Public Bank was up 48 sen or 2.79% to RM17.68, Hong Leong Bank added 42 sen or 2.6% to RM16.60 while HLFG gained 18 sen or 1.19% to RM15.28.
RHB Bank increased eight sen or 1.65% to RM4.93 and Maybank rose three sen or 0.39% to RM7.69.
The gainers list also included Gets Global Bhd (which surged 56 sen or 29.79% to RM2.44), Lii Hen Industries Bhd (up 30 sen or 6.98% to RM4.60), Malaysian Pacific Industries Bhd (rose 28 sen or 1.24% to RM22.94), KESM Industries Bhd (gained 25 sen or 2.51% to RM10.20) and Vivocom Intl Holdings Bhd (up 20 sen or 16.81% to RM1.39).
Asia stocks were mixed today. Japan's Nikkei 225 jumped 1.78% while South Korea's Kospi gained 1.35%. In China, the Hong Kong Hang Seng Index shed 0.28% while the Shanghai Stock Exchange Composite Index declined 0.53%.
CNBC reported that Stocks in Asia-Pacific were mixed on Wednesday, with tech shares in the region monitored following overnight declines in the sector on Wall Street.
Source: The Edge
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