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 (June 24): The FBM KLCI fell 0.58% today as domestic political infighting, a slow vaccination rate and high daily Covid-19 cases continued to drag market sentiment.
The benchmark index ended 9.05 points lower at 1,555.71 after rising to an intraday high of 1,567.59.
MIDF research head Imran Yassin Md Yusof said the market lacked catalysts and sentiment was bearish on domestic political risk.
“However, I expect some bargain hunting in the next few days as the KLCI has broken the key supporting level of 1,565,” he told theedgemarkets.com.
TA Securities, meanwhile, said in a note today that due to continuing domestic political infighting and pending a stronger ramp-up in vaccination and substantial reduction in daily Covid-19 cases, the market should extend its correction in the immediate term.
“Key index support on breakdown below 1,565 will be 1,552, with better support at 1,540 and 1,520. Immediate resistance is lowered to 1,580, with stronger upside hurdles at 1,600 and 1,623,” it said.
Across Bursa Malaysia, 5.21 billion securities were traded for RM3.03 billion today, compared with 5.22 billion securities worth RM2.78 billion yesterday.
Losers led gainers by 916 to 188, while 374 counters closed unchanged.
Investors continued to flee from glove stocks amid lower average selling prices (ASPs). This resulted in index-linked Top Glove Corp Bhd falling 10 sen or 2.25% to RM4.35 and Hartalega Holdings Bhd dropping 33 sen or 4.13% to RM7.67.
On the other hand, Kobay Technology Bhd was the day's top gainer, surging 38 sen or 16.31% to RM2.71. This was followed by Genetec Technology Bhd (up 37 sen or 5.85% to RM6.69) and newly listed OM Holdings Ltd (up 36 sen or 9.81% to RM4.03).
Meanwhile, Nestlé (Malaysia) Bhd was the top loser, falling 50 sen or 0.37% to RM133.5. This was followed by Hartalega and BLD Plantation Bhd, which slipped 30 sen or 3.23% to RM9.
Serba Dinamik Holdings Bhd, embroiled in an audit dispute, was the most actively traded stock. The counter saw 371.67 million shares traded, and closed six sen or 10.08% down at a new low of 53.5 sen.
Asian stocks were mixed, with South Korean shares closing at an all-time high, led by chip heavyweights that tracked a record finish on the Nasdaq. The benchmark KOSPI closed up 0.3% at 3,286.1, Reuters reported.
In contrast, Japanese shares were flat at 28,875.23 as uncertainty over domestic corporate earnings kept investors on the sidelines, while Hong Kong stocks closed 0.23% higher at 28,882.46, boosted by energy and IT firms.
Source: The Edge
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