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 (Dec 16): The FBM KLCI extended its gain for the second day running, tracking uptrends in regional bourses thanks to positive market sentiment emanating from the overnight surge on Wall Street and supported by ongoing window-dressing activities as well as Budget 2021 being approved by the Dewan Rakyat yesterday.
At 5pm, the FBM KLCI closed 0.44% or 7.39 points higher at 1,681.41, after moving between 1,679.39 and 1,695.87.
Across Bursa Malaysia today, the sentiment was positive with 830 gainers versus 453 decliners, while 458 counters were unchanged. A total of 11.22 billion securities were traded for RM5.18 billion, higher compared to 9.96 billion units worth RM5.09 billion recorded yesterday.
Reuters reported that Asian stocks were buoyant on Wednesday and the US dollar eased as hopes of effective coronavirus vaccines and the growing prospect of more US fiscal stimulus cheered investors ahead of the Christmas holiday season.
The fresh optimism over the US stimulus package pushed Wall Street higher with the Nasdaq charting a record high as it closed up 1.25% or 155.02 points at 12,595.06, and the Dow Jones Index jumped by 337.76 points or 1.13% to close at 30,199.31.
Elsewhere in Asia, Japan's Nikkei 225 rose 0.26%, while Seoul's Kospi gained 0.54%. In China, Hong Kong’s Hang Seng Index added 0.97%, while the Shanghai Stock Exchange Composite Index inched down 0.01%.
In Malaysia, remisier Jeffry Azizi Jaafar told theedgemarkets.com that the optimism in the local bourse was boosted by the overnight gains in the US markets.
He added that investors’ sentiments were also lifted by news of the lower House passing Budget 2021 yesterday. With the slew of positive news, he believed that investors' mood was also picked up by the year-end window-dressing activities, which he believes will bolster the KLCI’s performance until end-2020.
The heavyweights that powered FBM KLCI included Top Glove Corp Bhd and Hartalega Holdings Bhd.
Top Glove closed up 36 sen or 5.62% at RM6.77, on news that its chairman and Tropicana Corp continued to buy up the glove maker's shares. Meanwhile, Hartalega rose 46 sen or 3.84% to close at RM12.44. Both counters were among Bursa’s top ten gainers today.
The positive sentiment also spilt over to other blue chips, such as Genting Bhd and Genting Malaysia Bhd (GenM), which continued their upward momentum and closed at their nine-month highs.
Genting closed up four sen or 0.83% at RM4.84, while GenM closed two sen or 0.71% higher to at RM2.83.
Consumer products and services counters, such as Nestle (M) Bhd, Carlsberg Brewery Malaysia Bhd, Heineken (M) Bhd and Fraser and Neave Holdings Bhd, continued to dominate Bursa’s gainers list.
For actively traded stocks, Sino Hua-An International Bhd appeared on the top again, albeit having a lower trading volume of 759.37 million shares compared to 1.43 billion shares yesterday. The stock closed down 1.5 sen at 19 sen.
Other most actively traded stocks included Tiger Synergy Bhd, AT Systematization Bhd, Mlabs Systems Bhd and Bintai Kinden Corp Bhd.
Meanwhile, oil and gas-related companies, including Petronas Chemicals Group Bhd, Hengyuan Refining Co Bhd, Petronas Dagangan Bhd, Petron Malaysia Refining & Marketing Bhd and Petronas Gas Bhd, fell among Bursa's top decliners.
Top decliner Petronas Chemicals, which is also a KLCI constituent, saw its share price settle down 36 sen or 4.52% at RM7.60, while Hengyuan dropped 29 sen or 4.42% to RM6.27.
Source: The Edge
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