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...
Shares of Supermax Corp Bhd, a major glove manufacturer, dropped nearly 5% to their lowest level in over nine months following the announcement of its largest quarterly loss. The stock fell to 78 sen, with a market capitalization of RM2.15 billion, reflecting investor concerns over the company's financial performance.
Key Points:
Significant Quarterly Loss: Supermax reported its largest quarterly loss, leading to a sharp decline in its share price. The company's revenue for FY2024 decreased by 21.4% due to lower sales volume and declining average selling prices (ASPs).
Future Outlook: CIMB Securities expects Supermax to return to profitability by FY2025, driven by improved ASPs and sales volume as supply-demand dynamics in the global glove sector become more favorable. However, margins are anticipated to remain constrained due to the strengthening of the ringgit.
Analyst Recommendations: Despite the expected recovery, CIMB maintains a 'hold' rating on Supermax, lowering its target price from 96 sen to 87 sen. The forecasted core net profits for Supermax are RM31.4 million for FY2025, RM58.1 million for FY2026, and RM80.8 million for FY2027.
The decline in Supermax’s stock price highlights ongoing challenges in the glove industry, particularly in the face of currency fluctuations and changing market dynamics.
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