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 5): The FBM KLCI finished lower today after failing to sustain the upward momentum seen in the first hour of trading, due mainly to selling pressure in rubber glove heavyweights.
The benchmark index closed 1.11 points or 0.07% down at 1,584.24.
Glove maker Supermax Corp Bhd closed 3.04% or 12 sen lower at RM3.83, Top Glove lost seven sen or 1.47% to RM4.68, and Hartalega Holdings Bhd fell three sen or 0.33% to RM8.95.
Other blue chips that closed lower included Dialog Group Bhd, CIMB Group Holdings Bhd, Kuala Lumpur Kepong Bhd and Public Bank Bhd.Malacca Securities Sdn Bhd senior analyst Kenneth Leong said the KLCI struggled to keep its earlier gains as it was dragged down by the selling activities in glove heavyweights.
“Nonetheless, the broader market was slightly positive with the construction sector being the biggest winner on the news that the Cabinet has approved the Mass Rapid Transit Line 3 (MRT3) project,” he told theedgemarkets.com.
The construction index gained the most in percentage terms among Bursa Malaysia's indices, rising 2.24% to close at 186.42.
Gainers slightly outnumbered losers at 542 to 530, while 421 counters were unchanged. Trading volume stood at 7.84 billion shares worth RM2.79 billion.
The day's top active counters included Parkson Holdings Bhd, Berjaya Corp Bhd, Berjaya Land Bhd, Matang Bhd and Dagang NeXchange Bhd.
Paragon Globe Bhd led the losers list, closing 36 sen or 24.49% lower at RM1.11. This was followed by Cheetah Holdings Bhd, Malaysian Pacific Industries Bhd, Kluang Rubber Company (Malaysia), Rapid Synergy Bhd, Heineken Malaysia Bhd and Euro Holdings Bhd.
The day's top gainers included Pecca Group Bhd, KESM Industries Bhd, BSL Corp Bhd, British American Tobacco (Malaysia) Bhd, Genetec Technology Bhd, AMMB Holdings Bhd and Unisem (M) Bhd.
Elsewhere in Asia, Japan’s Nikkei 225 increased 0.79%, while South Korea's Kospi rose 0.26%.
Reuters reported that Asia's emerging stock and currency markets trended lower today in holiday-thinned trade as strong US jobs data raised worries the US Federal Reserve (Fed) may hike interest rates sooner than it has indicated.
“The prospects of a return to full employment is raising questions about whether the Fed can stick to its pledge to keep interest rates steady through 2023. The market has fully priced in one rate hike by the end of next year,” said the news agency.
Source: The Edge
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