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 17): The FBM KLCI bucked the regional trend to close higher on broad-based buying today, helped by attractive valuations after the recent decline.
The index finished 1.38% or 20.69 points higher at 1,523.59, after staying in the positive territory for the entire session.
Index-linked counters that rose included Press Metal Aluminium Holdings Bhd (up 19 sen or 3.87% at RM5.10), Sime Darby Bhd (up eight sen or 3.79% at RM2.19) and Hartalega Holdings Bhd (up 22 sen or 3.21% at RM7.07).
The KLCI’s gain was also contributed by gains in banking stocks CIMB Group Holdings Bhd, Malayan Banking Bhd, RHB Bank Bhd, Hong Leong Bank Bhd, Public Bank Bhd and Hong Leong Financial Group Bhd.
MIDF's head of research Imran Yassin Md Yusof said the market sentiment was lifted by the government’s move to reopen more economic sectors, and the cheap valuation that prompted buying interest from foreign investors.
“Despite the current political uncertainty, we have seen foreign investors becoming net buyers in the local bourse for the last two trading days, given our KLCI valuation is at attractive levels,” Imran said.
“We experienced a similar political scene in February last year (with the unexpected resignation of Tun Dr Mahathir Mohamad as prime minister), hence I think investors know what to expect and have positioned themselves going forward under the current political scenario,” he added.
Market breadth was positive with gainers leading losers by 632 to 373, while 419 counters closed unchanged.
Across Bursa Malaysia, 4.34 billion shares were traded for RM2.41 billion, compared with 5.04 billion shares worth RM2.36 billion yesterday.
Notable gainers included Nestle (M) Bhd, Petronas Dagangan Bhd, Hartalega, Vitrox Corp Bhd, Hengyuan Refining Co Bhd and Genting Plantations Bhd.
Top losers were Sam Engineering & Equipment (M) Bhd, Dutch Lady Milk Industries Bhd, KESM Industries Bhd, Genetec Technology Bhd, Batu Kawan Bhd and Pecca Group Bhd
The day’s most active stocks included Advance Synergy Bhd, Fintec Global Bhd, Malayan United Industries Bhd, Avillion Bhd, Komarkcorp Bhd, KNM Group Bhd, Kanger International Bhd and MMAG Holdings Bhd.
Elsewhere in Asia, Japan's Nikkei 225 fell 0.36%, South Korea's Kospi declined 0.89%, Hong Kong’s Hang Seng Index dropped 1.66% and the Shanghai Stock Exchange Composite Index closed down 2%.
Reuters reported that Asian shares stumbled today, rattled by concerns over China's regulations for its once-freewheeling internet sector and the worldwide spike in Covid-19 infections driven by the Delta variant
“Markets were also tracking developments in Afghanistan, with the deteriorating situation in the capital Kabul having eclipsed overnight strength on Wall Street,” the newswire added.
Source: The Edge
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