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...
Market Daily Report: FBM KLCI snaps three-day streak of gains, down 3.83 points on profit taking in telecom stocks
KUALA LUMPUR (April 12): The FBM KLCI today closed 3.83 points or 0.24% lower, snapping three consecutive days of gains, due to profit taking in telecommunications stocks, namely Axiata Group Bhd and Digi.Com Bhd.
At 5pm, the local benchmark index closed at 1,608.42 points. Today, the FBM KLCI traded between 1,603.32 and 1,613.96 points.
Rakuten Trade Sdn Bhd head of research Kenny Yee told theedgemarkets.com that apart from the profit taking in telecom stocks, the lower performance of the FBM KLCI Index was in line with the weak regional market, which in turn is mirroring the poorer performance of US futures.
“The market’s undertone is still weak and most of the buying is very short term,” said Yee, adding that there is a lack of interest from foreign funds.Today, Bursa Malaysia saw 5.83 billion shares worth RM3.35 billion traded. There were 411 gainers and 667 losers, while 412 counters remained unchanged.
Among the blue chips, telcos were the biggest losers, led by Axiata, which closed 4.38% or 18 sen lower at RM3.93, and Digi.Com, which closed down 3.36% or 15 sen at RM4.31.
This was followed by Hartalega Holdings Bhd, which fell 19 sen or 1.92% to settle at RM9.70.
Elsewhere in Asia, Japan’s Nikkei 225 was down 0.77%, Hong Kong’s Hang Seng fell 0.86%, and China’s Shanghai Comp slid 1.09%, while South Korea's Kospi grew 0.12%.
Reuters reported today that Asian shares faltered on Monday as anxious investors wait to see if US earnings can justify sky-high valuations, while a rally in bonds could be tested by what should be very strong readings for US inflation and retail sales this week.
Nasdaq futures slipped 0.3% on Monday, as did S&P 500 futures.
Over the weekend, US Federal Reserve Chair Jerome Powell said the economy was about to start growing much more quickly, though the coronavirus remained a threat, said the newswire.
Reuters added that data out this week are expected to show US inflation jumped in March, while retail sales are seen surging perhaps even with a double-digit gain. Treasury is also set to test demand with offers of US$100 billion in debt this week.
Source: The Edge
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