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 finishes 0.59% lower as political and economic concerns weigh on sentiment
KUALA LUMPUR (June 23): The FBM KLCI closed lower today, as investors remained cautious amid concerns over the domestic political and economic situation.
The benchmark index finished 0.59% or 9.26 points lower at 1564.76.
Areca Capital Sdn Bhd chief executive officer Danny Wong said the market was dragged by the domestic political and economic risks.
“The market will be range bound until more clarity is seen on vaccination and Covid-19 cases,” he told theedgemarkets.com.TA Securities also said in a note today that range bound trade is likely to persist, amid worries over the domestic economic and political landscape in the current full movement control order period, and pending further acceleration in vaccinations and significant drop in daily Covid-19 cases.
“Key index supports remain at last Friday's low of 1,565, followed by the next pivot low of 1,552, while better supports are at 1,540 and 1,520.
“Immediate resistance remains at 1,600, with more formidable resistance expected from the recent highs of 1,623, 1,635 and 1,642,” it said.
Across Bursa Malaysia, 5.22 billion securities were traded for RM2.78 billion today, compared with 5.9 billion securities worth RM3.08 billion yesterday.
Losers led gainers by 716 to 297, while 442 counters closed unchanged.
Counters that dragged the KLCI included Top Glove Corp Bhd (down two sen or 0.45% to RM4.45) and Mr DIY Group (M) Bhd (down nine sen or 2.39% to RM3.67).
OM Holdings Ltd, the day's top gainer, hit limit up after surging 84 sen or 29.68% to RM3.67.
Meanwhile, PMB Technology Bhd was the top loser, plunging 45 sen or 15.79% to RM2.40.
Newly-listed Pekat Group Bhd was the most actively traded stock. The counter, which saw 243.3 million shares exchanging hands, soared 49.5 sen or 154.69% to 81.5 sen.
Most Asian bourses rose today, tracking overnight gains on Wall Street, after investors cheered the US Federal Reserve's pledge to not raise rates too quickly.
Japan’s Nikkei closed 0.03% lower at 28874.89, South Korea’s Kospi ended 0.38% higher at 3276.19, Hong Kong’s Hang Seng Index finished 1.79% higher at 28817.07, and the Shanghai Composite Index closed 0.25% higher at 3566.2.
Source: The Edge
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