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 18): The FBM KLCI ended the day on a flat note as investors remained on the sidelines, amid concerns over domestic political developments, while new Covid-19 cases in the country hit another fresh record high.
At 5pm, the benchmark index ended 1.65 points or 0.11% higher at 1,525.24. It opened the trading session 1.3 points higher at 1,524.98, and ranged between 1,518.95 and 1,526.34 throughout the day.
Market breadth was mixed, with 472 losers versus 436 gainers, while 459 stocks were unchanged. Trading volume shrank to 3.83 billion shares worth RM2.20 billion, compared with yesterday's 4.38 billion shares worth RM2.97 billion.
Malacca Securities Sdn Bhd senior research analyst Kenneth Leong told theedgemarkets.com that market sentiment remained cautious.“Investors are staying sideline, awaiting further clarity on the local political development,” he said.
“Today’s KLCI was supported by last-minute buying, especially among the index-linked glove stocks — Top Glove Corp Bhd and Hartalega Holdings Bhd — as local daily Covid-19 cases rose to a new record high today,” he added.
Top Glove ended 16 sen or 4.24% higher at RM3.93, while Hartalega closed up 14 sen or 1.98% at RM7.21.
Malaysia's new Covid-19 cases topped 22,000 today for the first time with 22,242 infections. Selangor continued to lead with the most cases, at 6,858. Since the pandemic reached its shores in January last year, the country has detected a cumulative 1.47 million cases.
Aside from the glove counters, Sime Darby Plantation Bhd's shares rose 11 sen or 2.94% to RM3.85, after the planter reported a stellar quarterly performance. Its net profit jumped 63% to RM617 million for the second quarter ended June 30, 2021 from RM378 million a year ago, as revenue grew 37.2% to RM4.41 billion from RM3.22 billion.
Meanwhile, the top gainers on the local bourse today included Carlsberg Brewery Malaysia Bhd, Heineken Malaysia Bhd, Kuala Lumpur Kepong Bhd, Genting Plantations Bhd, Sam Engineering & Equipment (M) Bhd and Batu Kawan Bhd.
Notable top losers, on the other hand, were Genetec Technology Bhd, Nestle (M) Bhd, Vitrox Corp Bhd, Petronas Dagangan Bhd, Fraser and Neave Holdings Bhd, Kobay Technology Bhd and UWC Bhd.
As for the most actives, there were Avillion Bhd, Advance Synergy Bhd, Sedania Innovator Bhd, Malayan United Industries Bhd, KNM Group Bhd, Serba Dinamik Holdings Bhd, Appasia Bhd, Dagang NeXchange Bhd and Dataprep Holdings Bhd.
Elsewhere in Asia, Reuters reported stocks edged up from a three-week low on Wednesday, but gains were capped by ongoing fears about the Delta variant of the coronavirus, which also caused New Zealand’s central bank to delay a previously expected rate hike.
Hong Kong’s Hang Seng Index climbed up 0.47% and the Shanghai Stock Exchange Composite Index closed up 1.11%; Japan's Nikkei 225 rose 0.59%, while South Korea's Kospi advanced 0.5%.
Source: The Edge
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