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 22): The FBM KLCI ended almost 1% lower today on continued profit taking, as sentiment remained jittery on concern over the resurgence of Covid-19 cases.
The benchmark index stayed in negative territory throughout the trading session. It closed 0.97% or 15.97 points down at 1,631.92 after hitting an intra-day low of 1,625.39.
TA Securities Holdings Bhd senior technical analyst Stephen Soo told theedgemarkets.com that worries over a new strain of Covid-19 in Europe affected market sentiment.
He added that the downtrend was also due to profit taking in recovery play on technology, banking and tourism-related stocks.
On the broader market, 1,046 counters finished lower versus 251 gainers, while 395 others were unchanged.
A total of 7.84 billion securities were traded at a total value of RM4.12 billion.
The heavyweights that dragged the KLCI included Genting Malaysia Bhd (down 15 sen or 5.43% at RM2.61) and Genting Bhd (down 24 sen or 5.27% at RM4.31).
Index-linked banking stocks were under selling pressure as well. CIMB Group Holdings Bhd fell 18 sen or 4.19% to RM4.12, Hong Leong Financial Group Bhd fell 3.53% or 64 sen to RM17.50, Public Bank Bhd fell 20 sen or 0.97% to RM20.46, Malayan Banking Bhd fell eight sen or 0.94% to RM8.40 and RHB Bank Bhd fell four sen or 0.74% to RM5.40.
On the other hands, heavyweight glove counters were steadier with Top Glove Corp Bhd closing up seven sen or 1.06% at RM6.69, Hartalega Holdings Bhd up 10 sen or 0.8% at RM12.60 and Supermax Corp Bhd up 16 sen or 2.32% at RM7.05.
Top decliners included Carlsberg Brewery Malaysia Bhd, Heineken (M) Bhd, Dutch Lady Industries Bhd, British American Tobacco (Malaysia) Bhd and Panasonic Manufacturing Malaysia Bhd.
The top active stock was Techna-X Bhd (formerly known as Sino Hua-An International Bhd), which saw 345 million shares traded. It closed down two sen at 14.5 sen.
Other actively-traded stocks included Bintai Kinden Corp Bhd, Iris Corp Bhd, Vivocom Intl Holdings Bhd, Kanger International Bhd, Yong Tai Bhd, XOX Bhd and Borneo Oil Bhd.
Meanwhile KESM topped the gainers list, closing up 78 sen or 6.24%. This was followed by Nestle (M) Bhd (+0.36%), Greatech Technology Bhd (+4.83%) and Batu Kawan Bhd (+1.13%).
Elsewhere in Asia, shares widened losses, extending a pullback from multi-year highs hit last week on fears a highly infectious new strain of Covid-19 that hit Britain could lead to a slower global economic recovery.
Japan's Nikkei 225 fell 1.04% to close at 26,436.39, while Seoul's Kospi tumbled 1.62% to 2,733.68. In China, Hong Kong’s Hang Seng Index fell 0.71% to 26,119.25, while the Shanghai Stock Exchange Composite Index closed down 1.86% at 3,356.78.
Source: The Edge
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