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 12): The FBM KLCI continued to extend its losses today, finishing 0.84% or 13.72 points lower at 1,615.69.
According to Rakuten Trade Research head of equity sales Vincent Lau, the index was down due to profit taking ahead of the weekend amid mixed performances regionally.
Specifically, Supermax Corp Bhd, CIMB Group Holdings Bhd and Top Glove Corp Bhd posted declines today. While the FBM KLCI declined, indices such as the FBM ACE, FBM Small Cap and FBM Fledgling indices posted gains.
The FBM ACE was up 2.13% or 222.07 points higher at 10,665.19, while the Small Cap was up by 0.19% or 31.13 points at 16,806.82. Meanwhile, the Fledgling Index finished 0.77% or 164.52 points higher at 21,551.02.
On the local market, top actives included Dagang NeXchange Bhd (DNeX), EA Holdings Bhd and XOX Bhd. The top gainers were Dutch Lady Milk Industries Bhd, Malaysian Pacific Industries Bhd and Hong Leong Industries Bhd, whereas KESM Industries Bhd, Heineken Malaysia Bhd and Sarawak Oil Palms Bhd topped the list of losers.
The decline seen in the KLCI today was in line with mixed performances demonstrated by other leading bourses in the region.
While the Nikkei 225 closed 1.73% or 506.19 points higher at 29.717.83, Hong Kong's Hang Seng Index closed 2.2% or 645.89 points lower at 28.739.72. In contrast, the Shanghai Composite eked out a 0.47% or 16.25-point gain at 3,453.08.
Reuters reported that most emerging Asian stocks climbed today and were set for strong weekly gains as US stimulus measures and easing bond yields lifted sentiment.
“Global markets received a boost after US President Joe Biden signed a US$1.9 trillion (RM7.82 trillion) stimulus bill into law and as a dovish European Central Bank (ECB) meeting triggered a retreat in bond yields,” it said.
Source: The Edge
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