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 10): The FBM KLCI finished up 10.72 points or 0.68% at its intraday high of 1,596.85 today after an afternoon spike as world equity indices rose with crude oil prices amid optimism about a global economic recovery from the impact of the Covid-19 pandemic.
At 5pm today, share trade volume across Bursa Malaysia however slumped to 4.84 billion securities valued at RM3.62 billion compared with yesterday’s 7.18 billion securities worth RM4.71 billion.
"The local market should extend recovery underpinned by firm global markets, and optimism over economic recovery potential, given the positive vaccine rollout globally which should eventually stall the coronavirus pandemic,” TA Securities Holdings Bhd analysts wrote in a note today.
At a glance, the KLCI's afternoon spike today was seen between 2:30pm and 3pm.
Specifically within the 30-stock KLCI, a sharp rise was seen in share prices of Hong Leong Bank Bhd, Hong Leong Financial Group Bhd, CIMB Group Holdings Bhd and Hap Seng Consolidated Bhd during afternoon trades.
Hong Leong Bank finished 66 sen or 3.76% higher at RM18.22, Hong Leong Financial rose 20 sen or 1.19% to RM17, CIMB concluded the day 13 sen or 3.2% higher at RM4.19, while Hap Seng Consolidated closed at RM8.40, after rising 27 sen or 3.32%.
Bursa’s Financial Services index rose 1.82% to become the top-percentage gainer among bourse gauges.
Globally, it was reported that Asian stocks hit a record high on Wednesday, as upbeat earnings, hopes of a large US fiscal stimulus and a prolonged period of low interest rates, fanned optimism about a global recovery from the pandemic.
It was reported that MSCI's ex-Japan Asian shares index rose 0.86%, breaking above its January peak to reach its highest level ever.
"(In commodity markets, crude) Oil prices rose again on Wednesday, extending their more than week-long rally, after industry data showing a fall in US crude oil stocks added to optimism about an expected rise in global fuel demand. Brent crude was up by 11 cents or 0.2% at US$61.20 by 0110 GMT, after rising nearly 1% on Tuesday, when it touched a 13-month high.
US crude added 2 cents to US$58.28,” Reuters reported.
In Malaysia tomorrow (Feb 11), the focus will be on Bank Negara Malaysia’s (BNM) announcement on the country’s economic performance for the fourth quarter of 2020 (4Q20).
For 3Q20, Malaysia’s economy, as measured by gross domestic product, contracted 2.7% from a year earlier, after a 17.1% on-year drop in 2Q20, according to BNM’s statement on Nov 13, 2020.
Source: The Edge
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