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 (Feb 19): The FBM KLCI closed 9.09 points or 0.57% higher today, lifted by gains among component stocks including Kuala Lumpur Kepong Bhd and Nestle (Malaysia) Bhd, amid mixed performance in regional markets.
At 5pm, the benchmark index ended the week at 1,584.93, after it had been in the negative zone for three consecutive days.
On a week-on-week basis, however, the KLCI was down 0.9% against last week’s closing of 1,599.42.
In a note, Hong Leong Investment Bank analyst Ng Jun Sheng said the benchmark index is vulnerable to further consolidation amid the fourth quarter of 2020 (4Q2020) reporting season.
“Nevertheless, downside risk could be limited near the 1,545-1,561 zones on the back of the Fed’s dovish outlook, huge US stimulus package, falling Covid-19 infections globally, and the planned vaccination programme in Malaysia starting Feb 26,” he said.
Across the bourse, a total of 14.37 billion shares were traded, valued at RM6.36 billion. Market breadth was barely positive, as 579 gainers outnumbered 527 decliners.
Several semiconductor stocks were among the gainers, with Malaysian Pacific Industries Bhd topping the list, gaining RM1.50 to close at RM38.40. ViTrox Bhd and Unisem Bhd were also among top gainers.
The losers were led by Hong Leong Bank Bhd, which fell 34 sen to close at RM17.78.
The top active stock was Dagang NeXchange Bhd, which saw a total of 582 million shares exchanged.
Across the region, markets were mixed. Japan’s Nikkei 225 fell 0.72%, while South Korea’s Kospi and Hong Kong’s Hang Seng Index rose 0.68% and 0.16% respectively.
Reuters reported that Asian stocks pulled back from all-time peaks on Friday as higher longer-dated bond yields and underwhelming US data dented investor confidence in a faster economic recovery from the Covid-19 pandemic, while gold hit a seven-month trough.
MSCI’s broadest index of Asia Pacific shares outside of Japan was last down 0.1% at 733.9 from a record high of 745.89 touched on Thursday, it said.
Source: The Edge
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