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 5): The FBM KLCI closed 36.88 points or 2.52% higher at 1,501.49 while Bursa Malaysia’s indices for technology stocks and small market capitalisation (small cap) companies rose by a larger quantum as investors speculated on the outcome of the closely-watched US presidential election and as they looked ahead to the tabling of Malaysia’s Budget 2021 tomorrow. There were more than 1,000 gainers across Bursa today.
At 5pm today, the KLCI closed at its intraday high while Bursa’s Technology Index ended up 5.36% to become the largest-percentage gainer among the exchange’s indices. The Small Cap Index finished up 4.01%.
Bursa saw 6.92 billion securities worth RM3.89 billion traded across the exchange. There were 1,096 gainers versus 204 decliners as global stock markets rose ahead of a conclusive outcome from the US presidential election.
It was reported that stocks and currencies in Asia's emerging markets rose on Thursday as Democrat Joe Biden pulled ahead of Republican rival Donald Trump and was within striking distance of clinching a nail-biting US presidential election.It was reported that the Democratic candidate is widely seen as likely to be less combative on trade policy and in relations with the region's growth engine China, and investors hope that it may clear the way for Asia's stronger recovery from the coronavirus crisis.
"Biden is a seasoned politician and will revert the United States to a trajectory of more conventional foreign policies and geopolitical manoeuvring, which is somewhat good for China and emerging economies at large,” Reuters quoted Mahesh Sethuraman, country head of global sales trading at Saxo Capital Markets, Singapore as saying.
In Malaysia, MIDF Amanah Investment Bank Bhd research head Imran Yassin Yusof told theedgemarkets.com today that "investor sentiment has improved on a possible Biden win."
Imran said that a Biden win is expected to reduce market uncertainties as Biden will likely be less confrontational on global trade affairs.
Meanwhile, Malaysia’s Budget 2021 is also a crucial highlight this event-heavy week which also saw Bank Negara Malaysia maintaining the Overnight Policy Rate at 1.75% on Tuesday (Nov 3).
Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said Budget 2021 is not the usual scheme as announced in previous years because the Budget this time involves a combination of solutions to support citizens’ livelihoods and the country’s economic growth as it fights against the COVID-19 pandemic.
Harian Metro quoted Tengku Zafrul as saying in an interview that Budget 2021, to be tabled by him in Parliament at 4pm tomorrow (Nov 6), will have to strike a balance between supporting the people’s livelihoods and the country’s economic growth.
Across Bursa today, top gainers included semiconductor manufacturers Malaysian Pacific Industries Bhd (MPI) and Unisem (M) Bhd after their share prices rose to record intraday highs at RM24.28 and RM6.16 respectively.
Both Bursa Technology index constituents pared gains when markets closed. At 5pm, leading gainer MPI ended at RM24.10 while Unisem finished at RM6.11 as investors took cue from US stocks' overnight performance.
Reuters reported that US growth stocks, currently comprising a large portion of names in areas such as tech, surged 4.31% as investors expected them to keep outperforming value stocks as they have in recent months.
It was reported that value names, which closed flat, are currently comprised of mostly cyclical stocks such as banks and energy.
Source: The Edge
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