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 (May 10): The FBM KLCI snapped a two-day winning streak today as market sentiment turned weak on heightened concern over the Covid-19 situation in the country.
Heavyweights like Top Glove Corp Bhd, Supermax Corp Bhd, Genting Malaysia Bhd and Genting Bhd saw the benchmark index pull back 3.53 points or 0.22% to 1,583.92, after having gained 11.78 points or 0.75% on last Thursday and Friday.
On the broader market, losers outnumbered gainers 845 to 296, on trade of 6.01 billion shares worth RM3.46 billion.
Malacca Securities Sdn Bhd head of research Loui Low said market sentiment was dampened by the Health Ministry's warning that daily Covid-19 cases in the country may surpass the 7,000 mark soon.
“The market has priced in the looming prospect of the lockdown, with a possible extension of the movement control order, due to the rising Covid-19 cases locally,” he told The Edge.
Going forward, Low is upbeat on the prospects of plantation and energy counters on expectations that they will ride on the “commodities supercycle” and report solid performance in the upcoming quarterly results season.
Top losers today included Transocean Holdings Bhd, Vitrox Corp Bhd, Pentamaster Corp Bhd, Supermax, Cycle & Carriage Bintang Bhd, Quality Concrete Holdings Bhd, UWC Bhd, British American Tobacco (Malaysia) Bhd and Malaysia Smelting Corp Bhd.
Notable gainers included Fraser & Neave Holdings Bhd, Nestle (M) Bhd, Pharmaniaga Bhd, Amcorp Properties Bhd, Pecca Group Bhd, Batu Kawan Bhd, Hengyuan Refining Co Bhd, B.I.G. Industries Bhd and Concrete Engineering Products Bhd.
The most actively traded stocks were Focus Dynamics Group Bhd, KTG Group Bhd, Sedania Innovator Bhd, Tanco Holdings Bhd, Kanger International Bhd, Bumi Armada Bhd, Careplus Group Bhd and Velesto Energy Bhd.
Bloomberg reported that Asian stocks were mixed today following another record high for the S&P 500 Index as weak jobs data reinforced the case for stimulus.
“The materials sector led gains in an Asia-Pacific share index as commodities advanced. Australian stocks ended at an all-time high, while Hong Kong and China dropped,” it added.
Elsewhere in Asia, Japan’s Nikkei 225 rose 0.55% while Singapore’ STI declined.
Source: The Edge
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