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: KLCI rises slightly, but overall market finishes broadly lower in cautious trading
KUALA LUMPUR (May 17): The FBM KLCI finished the first trading day after the extended Aidilfitri weekend slightly higher, but the overall market was broadly lower as investors maintained their cautious mood.
The benchmark index closed 0.94 points or 0.06% higher at 1,583.46.
Market breadth was negative with 1,061 counters posting losses, compared with only 195 gainers.
Rakuten Trade head of equity sales Vincent Lau said the dampened sentiment is likely due to concerns that a stricter Movement Control Order (MCO) would be implemented in Selangor, the country's key industrial and manufacturing hub.
Health Minister Datuk Dr Adham Baba reportedly said that a stricter MCO in Selangor may be imposed if the state fails to curb the spread of Covid-19.
In total, some 6.6 billion shares worth RM3.77 billion were traded today.
Top actives included Focus Dynamics Group Bhd, Kanger International Bhd and Lambo Group Bhd.
The top value losers were consumer stocks Fraser & Neave Holdings Bhd, Nestle Malaysia Bhd and Dutch Lady Milk Industries Bhd.
Y&G Corp Bhd, Tomei Consolidated Bhd and Hartalega Holdings Bhd were the day’s top value gainers.
Source: The Edge
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