KUALA LUMPUR, Nov 19 (Bernama) -- Bursa Malaysia gave up earlier gains to end mixed today, amid a higher regional market showing, as property, construction, and healthcare counters attracted buying interests, while plantation, banking, and telecommunication stocks saw some profit-taking, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.70 points to close at 1,602.34 from yesterday’s close of 1,604.04. The benchmark index, which opened 0.86 of-a-point lower at 1,603.18, moved between 1,601.02 and 1,608.88 during the trading session. However, the broader market was mixed to higher, with gainers leading decliners by 565 to 438 while 502 counters remained unchanged, 961 untraded, and 14 suspended. Turnover narrowed to 2.83 billion units valued at RM2.08 billion versus 2.96 billion units valued at RM2.23 billion yesterday. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the benchmark index remained range-bound and it required a dec
Intel Corp is exploring a range of strategic options to counter its financial decline, including a potential split of its product design and manufacturing divisions. The move comes as the company grapples with severe financial losses and a declining market position, with shares hitting their lowest level since 2013.
Key Takeaways:
Potential Foundry Business Split: Intel is considering separating its foundry business, which produces chips for external customers, from its core product design operations. This would mark a significant shift in strategy for CEO Pat Gelsinger, who has previously emphasized the foundry business as key to Intel's recovery and competition with industry leaders like Taiwan Semiconductor Manufacturing Co. (TSMC). However, a less drastic approach, such as halting expansion plans, might be more likely in the short term.
Financial Challenges and Strategic Decisions: Intel's financial woes have intensified, with the company reporting a $1.61 billion net loss last quarter and further losses expected in the coming year. Amid shrinking sales and overambitious expansion efforts, the company has already taken steps to cut costs, including a 15,000 job reduction, reduced capital expenditures, and suspension of its dividend. Investment bankers from Morgan Stanley and Goldman Sachs are advising Intel on its options, which may also include potential mergers and acquisitions.
Urgency for a Turnaround: CEO Pat Gelsinger, who returned to Intel in 2021 with promises to restore its technological edge, faces increasing pressure as his comeback plan appears to falter. The company has experienced a 60% decline in share value this year and has fallen out of the top 10 largest chipmakers globally by market value. Complicating matters further, the recent departure of director Lip-Bu Tan has removed a key figure with significant semiconductor industry expertise from Intel's board.
With its market position eroding and losses mounting, Intel's leadership is racing to find a viable path forward. The potential restructuring and ongoing strategic review reflect the urgency of the situation as Intel seeks to regain its footing in an increasingly competitive semiconductor industry.
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