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 6): The FBM KLCI edged lower today against the backdrop of retreating regional markets amid a surge in Covid-19 cases and its impact across the region.
The benchmark index settled 5.98 points or 0.4% lower at 1,489.8.
UOB KayHian investment analyst Mohd Fakhrul Asyraq Mohd Aluwi said the KLCI drifted lower on selling pressure in rubber glove heavyweights.
“On a sectoral basis, the Healthcare Index dragged the market lower after declining by 1.16%, as Top Glove [Corp Bhd] and Hartalega [Holdings Bhd] were both down by 2% today.
“Meanwhile, Asian shares lost ground despite gains overnight on Wall Street, as the spread of the Delta variant of the coronavirus across the region heightened worries on economic recovery,” Fakhrul told The Edge.
Top Glove ended nine sen or 2.39% lower at RM3.68 while Hartalega fell 14 sen or 2.07% to RM6.63.
Fakhrul added that investors turned cautious amid worries over the continued rise in Covid-19 cases in the country.
Malaysia reported another record high number of daily cases at 20,889, the second day with more than 20,000 new infections.
The broader market was mixed, with 496 counters closing higher, versus 495 that fell and 431 that closed unchanged.
A total of 4.29 billion shares were traded at a value of RM2.53 billion, compared with 4.69 billion shares worth RM2.42 billion yesterday.
The top gainers were SAM Engineering & Equipment (M) Bhd (up RM1.82 or 14.82% to RM14.10), Genetec Technology Bhd (up RM1.30 or 5.57% to RM24.62) and Kobay Technology Bhd (up 72 sen or 18.18% to RM4.68).
Among the top losers were Nestle (M) Bhd (down 80 sen or 0.6% to RM133.10), AEON Credit Service (M) Bhd (down 22 sen or 1.85% to RM11.68) and Malaysian Pacific Industries (down 20 sen or 0.44% to RM45.40).
Dagang NeXchange Bhd, which saw 307.7 million shares changing hands, was the most actively traded stock.
Meanwhile, Reuters reported that China shares closed lower today on worries over a continuing surge of new coronavirus cases and tightening government regulations.
The Shanghai Composite index closed 0.24% lower at 3,458.23, while Hong Kong’s Hang Seng Index declined 0.09% to 26,179.4.
Elsewhere, South Korea’s KOSPI fell 0.18% to 3,270.36, while Japan’s Nikkei 225 finished 0.33% higher at 27,820.04.
Source: The Edge
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