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 25): The FBM KLCI fell today as market sentiment was dampened by fears that the rising number of Covid-19 cases could lead to a more stringent lockdown.
The benchmark index closed 20.12 points or 1.26% lower at 1,576.62.
Malacca Securities Sdn Bhd senior analyst Kenneth Leong said investor sentiment was affected by talk that the current lockdown measures would be tightened given the Covid-19 situation.
“If the 1,600 level cannot be breached, we may see a further pull back going forward,” he told theedgemarkets.com.Hong Leong Investment Bank's head of retail research Ng Jun Seng said in a note today that the KLCI is expected to further consolidate (supports 1,562-1,573; resistances: 1,600-1,618-1,633) as investors continue to weigh on the downside risks to the economy and corporate earnings growth from the second movement control order (MCO 2.0) coupled with the start of the upcoming 4Q20 results season.
“Sentiment is also dampened by worries that in the wake of the reported Covid-19 cases staying protractedly high and with various bodies expressing concerns that manufacturing, aside from construction, is the sector that contributed to the surging cases and clusters, the threat of lockdown to be extended beyond Feb 4 is intensifying,” he added.
Across Bursa Malaysia, 7.48 billion securities were traded for RM5.17 billion, compared with 6.63 billion securities worth RM4.81 billion last Friday (Jan 22).
Losers led gainers by 1,119 to 231, while 311 counters closed unchanged.
Among the KLCI component stocks, Hong Leong Financial Group Bhd led the losers’ list with a 56 sen or 3.36% decline to RM16.12. This was followed by Nestle (M) Bhd, which dropped by 50 sen or 0.36% to RM137.5, and Petronas Chemicals Group Bhd, which slipped 45 sen or 6.12% to RM6.90.
The KLCI Healthcare index rose 1.13% to 3,590 as glove counters saw renewed buying interest. Hartalega Holdings Bhd, which was the top gainer today, rose 68 sen or 5.52% to RM13. Supermax Corp Bhd, the second top gainer, added 47 sen or 7.2% to RM7. Top Glove Corp Bhd gained 27 sen or 4.32% to RM6.52.
Asian shares rose today as concerns over rising Covid-19 cases and delays in vaccine supplies were eclipsed by expectations of a US$1.9 trillion fiscal stimulus plan to help revive the US economy, Reuters reported.
Japan’s Nikkei 225 closed 0.67% higher at 28,822.29, South Korea’s Kospi ended 2.18% higher at 3,208.99, and Hong Kong’s Hang Seng finished 2.41% higher at 30,159.01.
Source: The Edge
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