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 (Aug 9): The FBM KLCI rose marginally on the back of better-than-expected economic data, as Malaysia’s Industrial Production Index (IPI) rose 1.4% in June from a year earlier.
Growth in the mining segment led the recovery in the IPI index, even as manufacturing and electricity segments contracted, according to the latest data from the Department of Statistics Malaysia that were released earlier today.
At 5pm, the benchmark index settled 6.93 or 0.47% higher at 1,496.73.
Bank Islam Malaysia Bhd economist Adam Mohamed Rahim said gain in the FBMKLCI index is in line with positive regional markets backdrop and shared that selected constituents, namely Genting Bhd (Genting) and Genting Malaysia Bhd (GenM), had pushed the benchmark index higher today.
“On a sectoral basis, the Bursa Malaysia Transportation and Logistics Index was the largest gainer, after ending 1.3% higher. The local market was probably upbeat on the latest announcement regarding relaxations of movement restriction,” he told The Edge.
Shares in Genting ended 18 sen or 3.96% higher to RM4.73, while GenM finished 11 sen or 4.06% higher to RM2.82.
Adam also pointed out that the latest daily tally of Covid-19 cases in the country experienced another drop today – to 17,236 from yesterday’s 18,688 – continuing a downward trend seen in the past few days since the country recorded its record high daily infections of 20,889 on Friday (Aug 6). This had helped somewhat to offset concerns about the acceleration of infections from the Delta variant in many countries, he added.
Meanwhile, the broader market was positive, with 520 counters closing higher, versus 449 that fell and 456 that closed unchanged.
A total of 3.64 billion shares were traded at a value of RM2.18 billion, compared with 4.29 billion shares worth RM2.53 billion yesterday.
The top gainers were Genetec Technology Bhd (up 78 sen or 3.17% to RM25.40), Heineken Malaysia Bhd (up 60 sen or 2.73% to RM22.60) and Carlsberg Brewery Malaysia Bhd (up 44 sen or 2.09% to RM21.54).
Among top losers were Malaysian Pacific Industries Bhd (down 70 sen or 1.54% to RM44.70), KESM Industries Bhd (down 38 sen or 2.84% to RM13.02) and D&O Green Technologies Bhd (down 23 sen or 3.24% to RM5.19).
Dagang NeXchange Bhd, which saw 145.28 million shares traded, was the most actively traded stock.
Elsewhere in the region, trading was muted with holidays in Japan and Singapore.
Reuters reported China stocks rose on Monday, with a strong rebound in blue-chip stocks offsetting losses in highly-valued tech shares, as signs of slowing economic growth fanned hopes of fresh policy easing.
The Shanghai Composite index closed 1.05% higher at 3,494.63 today, while Hong Kong’s Hang Seng Index rose 0.40% to 26,283.40; South Korea’s KOSPI fell 0.30% to 3,260.42.
Source: The Edge
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