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 11): The FBM KLCI closed the day 30.19 points higher at 1,684.58, up 1.83% from the previous day's close, driven by a rally in banking and financial services-related stocks as investors switch to recovery play, boosted by positive sentiment fuelled by vaccine news.
Leading the rally was Public Bank Bhd, which announced a four-for-one bonus issue recently. The top gainer across the stock exchange today, it closed 8.42% or RM1.70 higher at RM21.90.
Other financial blue chips that posted gains were Hong Leong Financial Group Bhd, Hong Leong Bank Bhd, Malayan Banking Bhd, AMMB Holdings Bhd (AmBank Group), BIMB Holdings Bhd, AEON Credit Service (M) Bhd, CIMB Group Holdings Bhd and LPI Capital Bhd as well as Allianz Malaysia Bhd.
This drove the Financial Services index up 727.09 points to 16,046.13 points.
Overall, however, losers still outpaced gainers across the bourse today, with 690 in the red versus 626 in the green, while 433 counters were unchanged, after 10.03 billion shares — valued at RM6.19 billion — were traded.
Glove stocks, meanwhile, continued to dominate the top losers list amid the switch-up in thematic play, with Hartalega Holdings Bhd heading the list after falling 64 sen or 4.46% to RM13.72. Also in the red were Kossan Rubber Industries Bhd (down 43 sen or 7.39% to RM5.39) and Supermax Corp Bhd (down 21 sen or 2.7% to RM7.56).
The actives list, on the other hand, was peppered by oil and gas counters, amid news flow that oil prices have pushed past US$50 per barrel. This appeared to have caused strong trading interest in counters like Bumi Armada Bhd, Sapura Energy Bhd, KNM Group Bhd, and Hibiscus Petroleum Bhd.
MIDF's head of research Imran Yassin Md Yusof told theedgemarkets.com that the rally was centred around optimism about an economic recovery.
"Banking stocks led the rally and this was expected, given that banks will be a direct beneficiary in a recovering economy," he said.
However, he believes that the market was moving slightly ahead and may lose steam next week.
"Our view is premised upon the fact that the big price changes came from comparatively low volumes. Also, it seems that our market was the exception today as the regional market appeared to be mixed, despite positive development regarding the vaccine as the US FDA (Food and Drug Administration) advisory panel recommended approval of Pfizer's Covid-19 vaccine for emergency use.
"In addition, other less positive news such as [a delay in] US stimulus talks and Brexit could play a role," he said.
South Korea's KOSPI index gained 0.86% to close at 2,770.06 points today, while Hong Kong Hang Seng Index rose 0.38% to 26,510.9 points. Philippine shares also climbed 1.28% to 7,246.16 points as, according to Reuters, the country's congress approved Budget 2021 that is aimed at boosting its pandemic-hit economy.
Japanese, Australian and Chinese markets, however, struggled for gains. Japan's Nikkei 225 fell 0.39% to 26,652.52 points, while Australia's All Ordinaries index slipped 0.44% to 6,886.37 points; the Shanghai Composite Index gave up 0.77% to settle at 3,347.19 points.
Source: The Edge
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