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 (April 19): The FBM KLCI bucked the regional uptrend to close 0.5% lower, as the daily number of new Covid-19 cases stays above 2,000 for the fifth consecutive day since last Thursday.
At the closing bell, the benchmark index fell 8.09 points to 1,600.29. It was hovering between 1,596.05 and 1,608.62 — compared to last Friday’s close of 1,608.38.
The selling across the board was reflected in the market breadth, which was negative with 740 losers versus 396 gainers, while 380 counters remained unchanged. Across Bursa Malaysia, trading volume stood at 7.47 billion securities worth RM4.14 billion.
Twenty-five of the 29 indices closed lower on Bursa today, except for the Transportation and Logistics, Technology, FTSE Asean 40 and FBM Fledgling indices.
The worst hit was the Construction Index, down 1.94% to 184.3 points, followed by the Property Index, which fell 1.54% to 749.11, and the Energy Index, which lost 1.44% at 909.36.
Among notable stocks, Bursa's top decliners included KLCI constituents Kuala Lumpur Kepong Bhd, Petronas Dagangan Bhd, Nestle (M) Bhd and MISC Bhd.
Among the 30 KLCI component stocks, Genting Malaysia Bhd led the pack. The casino operator shed 2.74% or eight sen to close at RM2.84, while its parent company Genting Bhd fell 2.46% or 12 sen to RM4.76.
Areca Capital Sdn Bhd chief executive officer Danny Wong told The Edge that the market was not stable as investor sentiments weighed by the prevailing negative sentiment over the Covid-19 pandemic cases rebounded.
“The KLCI will hover at 1,600 level in the short term, very much depending on the development of the Covid-19 cases and the progress of the country’s vaccination programme,” he added.
Nonetheless, he said the upcoming corporate quarterly result season in two weeks should be encouraging given the low base effect.
“Sectors such as manufacturing, technology are expected to continue to perform well in the upcoming quarterly result season,” he noted.
Top gainers by value included British American Tobacco (Malaysia) Bhd, Dataprep Holdings Bhd, BLD Plantations Bhd, Lotte Chemical Titan Holding Bhd, KESM Industries Bhd, Greatech Technology Bhd, Innoprise Plantations Bhd and Fraser & Neave Holdings Bhd.
Among the actively traded counters are Minda Global Bhd, Focus Dynamics Group Bhd, UCrest Bhd, Sedania Innovator Bhd, Key Asic Bhd, Sasbadi Holdings Bhd, Bina Puri Holdings Bhd and Mestron Holdings Bhd.
Elsewhere in Asia, Japan’s Nikkei 225 inched up 0.01%, while Singapore's Straits Time Index went up 0.19%.
Hong Kong’s Hang Seng Index rose 0.47% while the Shanghai Stock Exchange Composite Index jumped 1.49%.
Reuters reported that Asian shares hit a one-month high on Monday helped by expectations monetary policy will remain accommodative globally, while Covid-19 vaccine rollouts help ease fears of another dangerous wave of coronavirus infections.
Source: The Edge
Comments
Post a Comment