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 (July 6): The FBM KLCI finished near the flatline for the second day running today as investor sentiment continued to be affected by a high number of new Covid-19 cases.
The benchmark index closed 0.73 point or 0.05% lower at 1,531.63.
The index component stocks that saw the biggest declines were Digi.Com Bhd, Sime Darby Plantation Bhd and Maxis Bhd.
On the broader market, gainers led losers by 579 versus 417, while 427 counters closed unchanged.Rakuten Trade head of equity sales Vincent Lau said that while the wider market was mixed to steadier, the KLCI was impacted by the latest rise in new Covid-19 cases.
TA Securities Research, on the other hand, said lingering worries over rising infections and domestic political turmoil would continue to cloud local sentiment.
“On the index, immediate support remains at 1,520, with the 61.8% Fibonacci retracement (FR) of the 1,207 low to 1,695 peak at 1,509 as key retracement support, followed by 1,500.
“The 50% FR at 1,452, matching the November 2020 low, will be the next key support to watch upon further weakness. Immediate resistance is at 1,552, with 1,580 and 1,600 as stronger resistance points,” it said in a note.
The day’s top active stocks were Serba Dinamik Holdings Bhd, Metronic Global Bhd and Sapura Energy Bhd.
Top value gainers were Genetec Technology Bhd, Hengyuan Refining Company Bhd and Petronas Dagangan Bhd (PetDag).
Top value losers included Nestlé (Malaysia) Bhd, Malaysian Pacific Industries Bhd (MPI) and ViTrox Corp Bhd.
Reuters reported that Asian share markets were volatile today. Japan’s Nikkei 225 finished 0.16% higher and Singapore’s Straits Times Index rose 1.7%. The Shanghai Composite, meanwhile, fell 0.11%, while Hong Kong’s Hang Seng Index closed 0.25% lower.
Source: The Edge
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