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 4): The FBM KLCI scaled back slightly today from the 16-month high it reached yesterday as investors took profit after the strong gains, which saw the benchmark index easing 0.39% to settle at 1,621.85 on market close.
The FBM KLCI, which moved between 1,618.54 and 1,628.82 throughout the day, shed 6.41 points. Market breath was largely negative with losers outnumbering gainers at 732 against 579, while 429 counters were unchanged. In contrast, the index surged 29.54 points or 1.85% to close at 1,628.26 yesterday, with over 900 stocks as gainers.
Besides profit-taking, TA Securities Holdings Bhd senior technical analyst Stephen Soo said the weakness in KLCI today was partly due to the sell-down in glove stocks as the market switched to recovery play amid positive developments in the Covid-19 vaccine space.
Among the heavyweights that dragged the FBM KLCI were Top Glove Corp Bhd (down 13 sen or 1.92% to RM6.65) Supermax Corp Bhd (down 41 sen or 4.71% to RM8.29) and Hartalega Holdings Bhd (down 16 sen or 1.09% to RM14.50).
The healthcare index, which include the rubber glove makers, was the largest percentage decliner. It sank 1.43% to close at 3,922.73. Also a drag was Kossan Rubber Industries Bhd, which shed 10 sen to close at RM6.10.
Besides the glove makers, other major declines were Petronas Dagangan Bhd (down 88 sen or 4.09% to RM20.62), Axiata Group Bhd (down seven sen or 1.82% to RM3.77), Nestle (M) Bhd (down 50 sen to RM137), and Hong Leong Bank Bhd (down 20 sen to RM18.10).
Across Bursa Malaysia, some 14.22 billion shares were traded today, 15% more than yesterday's trading volume of 12.37 billion shares. Turnover rose 7.1% to RM6.76 billion from RM6.31 billion.
The top gainers, meanwhile, included Petron Malaysia Refining & Marketing Bhd (up 99 sen or 23.24% at RM5.25); Hengyuan Refining Company Bhd (up 89 sen or 19.06% at RM5.56); and oil and gas service provider Yinson Holdings (up 29 sen or 5.47% at RM5.59).
Yong Tai Bhd, meanwhile, topped the most-actively traded stocks with 853.29 million shares done. The counter closed up seven sen or 23.73% at 36.5 sen.
Soo noted that the KLCI experienced a huge swing this week, with the closing points ranging from 1,562.71 to 1,628.26, and that the recent correction has neutralised the buying momentum. Going into next week, he expects the KLCI to further consolidate, with key uptrend support seen at 1,600, and a resistance points kept at 1,650 and 1,680.
Elsewhere in Asia, Japan's Nikkei 225 fell 0.22%, while Seoul's Kospi rose 1.31%. In China, Hong Kong’s Hang Seng Index gained 0.4%, while the Shanghai Stock Exchange Composite Index closed up 0.26%.
Reuters reported that Asian shares scaled a record high on Friday on growing prospects of a large US economic stimulus package, while hopes that coronavirus vaccine rollouts will boost the global economy underpinned investor sentiment.
Source: The Edge
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