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 (March 1): The FBM KLCI finished the first day of March lower, with declines in rubber glove counters pushing the benchmark index downwards.
At market close, the index was down 0.67% or 10.61 points at 1,567.14.
Declines in the index's glove constituents contributed to the fall.
Supermax Corp Bhd was down 9.92% or 48 sen at RM4.36, valuing it at RM11.41 billion. Top Glove Corp Bhd was in second place, falling 6.49% or 34 sen to RM4.90, translating into a market value of RM39.2 billion. Hartalega Holdings Bhd finished 6.2% or 62 sen lower at RM9.38, valuing it at RM32.15 billion.TA Securities Research said in a note today that further downside volatility can be expected this week.
“However, while further correction on Wall Street last week on persistent inflationary and high valuation worries may spill over to the region, domestic economic recovery plays should cushion downside, with the banking, plantation, technology, utility, and oil and gas sectors attracting bargain hunters on any further sharp dips.
“Crucial index support remains at the recent low of 1,557 and the 200-day moving average at 1,552, with 1,521, the 23.6% Fibonacci Retracement (FR) of the 1,207 to 1,618 upswing, acting as a stronger support platform. Overhead resistance will be the 30-day moving average at 1,590, with tougher hurdles coming from 1,600, the 50-day ma (1,608) and 1,620,” it noted.
On the broader market today, some 10.69 billion shares were traded on the local bourse today.
Top active counters included GFM Services Bhd, Bumi Armada Bhd and Industronics Bhd. Top gainers were Malaysian Pacific Industries Bhd, D&O Green Technologies Bhd and Pimpinan Ehsan Bhd, while top losers were Nestle (Malaysia) Bhd, Fraser & Neave Holdings Bhd and KESM Industries Bhd.
Regionally, Asian bourses were largely in positive territory. Hong Kong's Hang Seng was 1.63% or 472.36 points higher at 29,452.37. Its counterpart in Shanghai was 1.21% or 42.32 points higher at 3,551. Japan's Nikkei 225 rose 2.41% or 679.49 points to 29,663.50.
According to Reuters, regional bourses were up today as bond markets ended last week on a calmer note, with regional manufacturing activity indicating that a gradual recovery is on track.
“A slew of data on Monday showed manufacturing activity in Indonesia and the Philippines was still in expansion territory while Japan figures showed the fastest growth in over two years. Factory activity in China, though, missed forecasts in February as a spike in Covid-19 cases led to lockdowns in parts of the country.
“The moves on Monday followed a wild ride last week that saw US 10-year bond yields peak at 1.61% before ending the week at 1.41%, easing pressure on Asia's debt markets and equity valuations. The yields were at about 1.41% on Monday,” it noted.
Source: The Edge
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