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 (Jan 11): The FBM KLCI finished 15.94 points or 0.98% lower at 1,617.25 on Monday, as concerns of another possible lockdown amid rising Covid-19 cases dampened investor sentiment.
The key index was in negative territory for most of the trading session. It fell to a low of 1,607.53 earlier.
MIDF Amanah Investment Bank Bhd research head Imran Yassin Yusof told theedgemarkets.com that weaknesses seen in some of the regional markets could influence the Malaysian market, adding that the uncertainty of another movement control order (MCO) might also drag the market today.
“We also saw some profit taking today because the market went up sharply in the last hour of [trading] last Friday,” he said.
If another MCO is announced today, he expects a knee jerk reaction on the stock market.
“However, the effect will not last long, and we will not see the same level of cautiousness as last year, because we are waiting for the vaccination program to be implemented,” he added.
Across Bursa Malaysia, the market breadth was negative, with losers leading gainers by 650 to 490, while 481 counters traded unchanged.
Meanwhile, 6.63 billion securities traded for RM5.56 billion, compared to 10.03 billion securities worth RM7.16 billion last Friday.
Investors took profit on glove counters after last Friday's rally. Top Glove Corp Bhd fell 7 sen or 1.08% to RM6.43; Supermax Corp Bhd declined by 27 sen or 3.7% to RM7.03; Hartalega Holdings Bhd tumbled 28 sen or 2.24% to RM12.22.
KLCI constituent stock losers were also led by Tenaga Nasional Bhd (down 28 sen or 2.66% to RM10.24), Petronas Chemicals Group Bhd (down 26 sen or 3.44% to RM7.30) and Malayan Banking Bhd (down 21 sen or 2.5% to RM8.19).
Plantation stocks continued to attract buying interest. Kuala Lumpur Kepong Bhd gained 70 sen or 2.92% to RM24.7, while Sime Darby Plantation Bhd advanced 4 sen or 0.77% to RM5.21.
Regional bourses were mostly down on Monday.
Reuters reported that South Korea shares retreat from record high on heavy foreign sell-off, while China stocks end lower on Sino-US tensions.
Korea’s Kospi ended 0.12% lower at 3,148.45; China’s Shanghai Composite index closed 1.08% lower at 3,531.50.
Source: The Edge
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