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Market Daily Report: Bursa Malaysia Ends Higher In Line With Most Regional Markets

KUALA LUMPUR, Sept 20 (Bernama) -- Bursa Malaysia ended higher on Friday in line with most Asian markets, mirroring gains from Wall Street, where investors welcomed the US Federal Reserve's substantial interest rate cut. The FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 3.17 points, or 0.19 per cent, to 1,668.82 at the close from Thursday's close of 1,665.65. It opened 5.03 points higher at 1,670.68, trading between 1,668.48 and 1,674.04 throughout the session. In the broader market, gainers outpaced decliners 732 to 468, while 465 counters were unchanged, 850 untraded and 32 suspended. Turnover swelled to 4.19 billion units worth RM5.97 billion, from Thursday's 3.99 billion units worth RM4.08 billion. UOB Kay Hian Wealth Advisors head of investment research, Mohd Sedek Jantan, noted the FBM KLCI's gains were led by utilities, logistics, and banking stocks, reflecting improved market sentiment. Additiona
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Samsung Projects Strong AI-Driven Chip Demand as Q2 Profit Soars on Higher Prices

 

Samsung Electronics forecasts robust artificial intelligence (AI)-driven demand for chips in the latter half of 2024, attributing a significant surge in second-quarter operating profit to rising semiconductor prices.

"In the second half of 2024, AI servers are expected to take up a larger portion of the (memory) market as major cloud service providers and enterprises expand their AI investments," Samsung stated.

Rebounding semiconductor prices, fueled by the AI boom, significantly boosted June quarter earnings for the world's largest producer of memory chips, smartphones, and TVs from a low base last year.

Key Highlights:

  • Share Price: Samsung's share price increased by 0.9% in morning trade, compared to a 0.5% rise in the benchmark index.
  • Operating Profit: Rose to 10.4 trillion won (RM33.42 billion) in April-June, a dramatic rise from 670 billion won a year earlier, marking Samsung's highest operating profit since Q3 2022.
  • Chip Division: Reported a profit of 6.45 trillion won, its highest since Q2 2022, and its second consecutive quarterly profit.

Chips Boom:

The surge in demand for high-end DRAM chips, including high bandwidth memory (HBM) chips used in AI chipsets, as well as chips for data center servers and AI-powered devices, has driven up chip prices.

  • Rival Trends: South Korean competitor SK Hynix also reported increased demand for AI chips, achieving its highest quarterly profit since 2018.
  • Nvidia Standards: While Samsung’s fourth-generation HBM (HBM3) has been approved by Nvidia for use in its H20 graphics processor for the Chinese market, Samsung is yet to meet Nvidia's standards for fifth-generation HBM chips (HBM3E).

Supply Adjustments:

Samsung plans to focus its production capacity on HBM, server DRAMs, and server solid-state drives (SSDs) for AI applications. Consequently, the supply of conventional PC and mobile memory chips will be constrained in the second half of the year.

This strategic shift aligns with the growing demand for AI applications, positioning Samsung to capitalize on the expanding AI market. The company’s forward-looking stance indicates a strong potential for sustained profitability driven by advancements and investments in AI technology.

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