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 12): The FBM KLCI gained 1.32% or 20.70 points to a more than three-month high of 1,590.78, thanks to persistent buying interest in blue chips as investment funds are hedging their positions for the likelihood of sooner-than-expected economic recovery.
Rakuten Trade Sdn Bhd research vice president Vincent Lau said the positive sentiment on KLCI was supported by investors’ optimism on the government’s efforts to contain the pandemic and that will help pave the way for economic recovery.
On the broader market, some penny stocks have regained interest. One that has hogged the limelight is AT Systematization Bhd whose trading volume soared to 2.62 billion, making it the most traded stock on Bursa Malaysia today. Its trading volume accounted for 15.82% of the exchange’s total daily trading volume of 16.56 billion shares.
Across Bursa Malaysia, there were 686 gainers versus 411 losers, while 536 counters were unchanged.Some 16.56 billion shares were traded today, up by a whopping 62% compared with yesterday's trading volume of 10.19 billion. The daily trading volume is the highest since Aug 12, when 19.16 billion shares changed hands.
Turnover was marginally lower at RM5.88 billion from RM5.95 billion recorded yesterday.
Other actively traded stocks included Metronic Global Bhd, Xidelang Holdings Ltd, Lambo Group Bhd, Compugates Holdings Bhd, PDZ Bhd, Key Alliance Group Bhd and DGB Asia Bhd.
Index-linked plantation counters lifted the benchmark index. Hap Seng Consolidated Bhd went up 40 sen or 4.98% to RM8.43 while Kuala Lumpur Kepong Bhd rose 26 sen or 1.13% to close at RM23.26.
The FBM Palm Oil Plantation-NC (FBMPALMOIL-NC) increased 1.84% or 227.06 points to 12,586.07. Bursa Malaysia Plantation also increased 1.43% or 102.87 points to 7,280.65.
At the close, the CPO futures contract for December 2020 increased RM33 to RM3,489 per tonne and for Jan 2021, it rose RM17 to RM3,363 per tonne.
Index-linked glove counters Top Glove Corp and Hartalega Holdings Bhd were both on the top losers list. Top Glove shed 16 sen or 2.04% to RM7.70 while Hartalega closed down 14 sen or 0.9% to RM15.36.
Supermax Corp Bhd also lost 20 sen or 2.25% to RM8.70, while Kossan Rubber Industries Bhd declined two sen or 0.3% to RM6.62.
Elsewhere in Asia, Tokyo's Nikkei 225 rose 0.68% while Seoul's Kospi fell 0.41%. Hong Kong’s Hang Seng Index shed 0.22% while the Shanghai Stock Exchange Composite Index declined 0.11%.
Reuters reported that Asian shares pared their gains in choppy trade on Thursday as investors awaited further details on whether drugmakers can develop a coronavirus vaccine.
Oil futures traded near two-month highs due to hope for a vaccine and a larger-than-expected drawdown in US crude inventories.
Brent crude rose 0.02% to US$43.81 a barrel, which is near a two-month high. US crude futures also gained 0.14% to US$41.51 a barrel, it added.
Source: The Edge
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