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 20): The FBM KLCI gave up its earlier gains and closed at its intraday low of 1,601.54, as investors took profit after Bank Negara Malaysia (BNM) maintained its overnight policy rate (OPR) at 1.75%.
The index finished the day 0.34 points or 0.021% lower after rising to a high of 1,616.84 earlier.
MIDF Amanah Investment Bank Bhd research head Imran Yassin Yusof told theedgemarkets.com the banking counters recovered and drove the market higher in earlier trade as they priced in BNM would maintain its OPR.
“However, the market turned negative as investors took profit after the news,” he added.
Amid the rising Covid 19 cases, he expects the market volatility to continue.
TA Securities also said in a note today that the local market should trend lower as investor sentiment deteriorate on concerns over the adverse impact from expanding movement control order restrictions to the whole of Peninsular Malaysia, given the worsening local Covid-19 situation.
Across Bursa Malaysia today, 5.86 billion securities were traded for RM4.38 billion, compared with 6.81 billion securities worth RM4.83 billion yesterday.
Gainers led losers by 619 to 528, while 469 counters traded unchanged.
The Technology Index expanded 2.26% to 79.24.
ACE Market-listed JF Technology Bhd, which hit limit up today, was the top gainer. The counter surged 45 sen or 29.8% to RM1.96.
ViTrox Corp Bhd also surged 42 sen or 2.73% to RM15.82, making it as the third top gainer today.
Meanwhile, Public Bank Bhd emerged as the second top gainer, rising 42 sen or 2.01% to RM21.32.
Top losers, on the other hand, were led by Nestle (M) Bhd, which fell RM1.50 or 1.08% to RM137.50. This was followed by Petronas Dagangan Bhd, which slipped 66 sen or 3.19% to RM20, and Fraser & Neave Holdings Bhd, which dropped by 60 sen or 1.91% to RM30.82.
Most Asian shares closed higher today.
Reuters reported that Asian shares climbed on Wednesday as US Treasury Secretary nominee Janet Yellen advocated for a hefty fiscal relief package to help the world’s largest economy ride out a pandemic-driven slump.
China’s Shanghai Composite Index finished 0.47% higher at 3,583.09; Hong Kong’s Hang Seng ended 1.08% higher at 29,963.41; Korea’s Kospi closed 0.71% higher at 3,114.55.
Japan’s Nikkei 225, however, ended 0.38% lower at 28,523.26.
Source: The Edge
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