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 22): The FBM KLCI closed lower, dragged by glove counters and in line with a regional decline that was induced by a sudden increase in the US 10-year treasury yields.
The local benchmark index closed 0.91% or 14.47 points lower at 1,570.46.
Rubber glove stocks came under selling in the wake of the arrival yesterday of the first batch of Covid-19 vaccine in Malaysia.
Of the major glove players, Supermax was down 4.66% or 27 sen at RM5.53, valuing the group at RM15.05 billion.Top Glove declined 4.46% or 27 sen to RM5.78 for a market value of RM47.41 billion, and Hartalega closed 3.48% or 42 sen lower at RM11.64, valuing the group at RM38.9 billion.
Kossan Rubber, however, managed to finish 1.01% or four sen higher at RM3.99, valuing the group at RM10.21 billion.
TA Securities Research said given the lack of firm trending indicators, the KLCI should trade sideways this week as the month draws to a close.
“However, the fresh buy signal on weekly stochastics show promise for return to uptrend mode, especially if the resurgent buying momentum sustain to encourage stronger retail participation in the lower liner and small cap space,” it said in a note.
On the broader market, decliners outnumbered gainers 704 to 427, with 558 counters closing unchanged.
Trading volume stood at 13.30 billion shares, with a total value of RM5.70 billion.
Active counters include Key Alliance Group, Nexgram Holdings and Velesto.
Top decliners were Malaysia Pacific Industries, ViTrox Corp and Tasco, while top gainers were Heineken Malaysia, Carlsberg Brewery and MAHB.
Elsewhere in Asia, Hong Kong’s Hang Seng Index was down 1.06% or 324.90 points at 30,319.83, and Shanghai’s Composite Index finished 1.45% or 53.72 points lower at 3,642.44. Tokyo’s Nikkei 225 bucked the trend by closing 0.46% or 138.11 points higher at 30,156.03.
Reuters reported that regional equities were weaker today, amid a spike in the US 10-year Treasury yields.
“Yields on the benchmark US 10-year Treasury notes rose to a one-year high, as falling infection rates, expectations of a stronger economic recovery and higher government borrowing in the US dented their lustre,” it said.
Source: The Edge
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