KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.
Dell Technologies Inc. plans to continue reducing its workforce through the fiscal year ending February 2025 as it navigates challenges related to cost control, declining demand for personal computers (PCs), and the profitability of servers optimized for artificial intelligence (AI).
Key Takeaways:
Focus on Cost Management: Dell will limit external hiring, reorganize jobs, and take additional actions to further reduce its overall headcount. This comes as the company strives to manage costs amidst concerns over the slow rebound in PC demand and the lower profitability of AI-optimized servers due to high costs associated with expensive components, such as Nvidia's computer chips.
Mixed Performance in Core Businesses: While Dell is expanding its high-powered server business for AI work, which has driven a 39% increase in its stock this year, the profitability of this new growth area is under scrutiny. In the most recent quarter, a higher mix of AI servers negatively impacted margins, even though overall profits improved compared to the prior period. Meanwhile, Dell’s more established PC business continues to face challenges; its fiscal second-quarter revenue fell 4% to $12.4 billion, with sales of consumer-oriented PCs dropping 22% from a year earlier.
Job Cuts as Part of Broader Transformation: Dell remains committed to disciplined cost management amid ongoing business transformation efforts. The company previously cut jobs in June, primarily in its sales division, and took a $328 million charge for severance expenses. Dell's global workforce currently stands at around 120,000 full-time employees.
As Dell continues its restructuring, it focuses on balancing growth in emerging areas like AI servers with managing costs in its core business segments to maintain overall profitability.
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