KUALA LUMPUR, Nov 5 (Bernama) -- Bursa Malaysia closed higher, buoyed by Bank Negara Malaysia’s (BNM) decision to maintain the Overnight Policy Rate (OPR) at 2.75 per cent, alongside positive cues from Wall Street. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 19.30 points, or 1.19 per cent, to 1,635.86 from Wednesday’s close of 1,616.56. The benchmark index opened 6.72 points higher at 1,623.28, and fluctuated between an intraday high of 1,642.44 and a low of 1,622.62 during the trading session. However, market breadth was negative, with losers outnumbering gainers 723 to 497, while 466 counters were unchanged, 1,075 untraded and 10 suspended. Turnover rose to 3.74 billion units valued at RM3.61 billion compared with yesterday’s 2.81 billion units valued at RM2.57 billion.
Key Highlights:
Microsoft's Write-Down:
- $800 million impairment announced by Microsoft (MSFT.US), marking a 40% loss on its $2 billion investment in General Motors' (GM) Cruise unit, initially valued at $30 billion.
- The write-down reflects Cruise's decline after losing its California robotaxi license in October 2023, following a high-profile incident involving a pedestrian.
GM's Strategic Shift:
- Cruise operations to merge with GM's driver assistance division, ending its run as a standalone entity.
- GM owns approximately 90% of Cruise, but its exact financial hit is unclear due to varying investment levels since 2016.
Impact on Stocks:
GM:
- Shares fell 1.3% following the news, reflecting investor concerns about the failed robotaxi strategy.
Microsoft:
- Shares were up 1.28% despite the write-down, as the company’s overall business remains robust.
Tesla and Alphabet:
- Tesla (TSLA.US) surged 5.9%, hitting an all-time high, bolstered by optimism about its 2025 robotaxi launch plans.
- Alphabet (GOOGL.US) gained 5.5%, benefiting from progress in its Waymo self-driving cabs, which reportedly complete 150,000 driverless rides weekly.
Uber and Lyft:
- Stocks for Uber (UBER.US) and Lyft (LYFT.US) dropped 5.8% and 4.8%, respectively, amid fears that their ride-hailing services could face disruption from major tech players entering the robotaxi market.
Industry Implications:
Shift in Leadership:
- The withdrawal of Cruise leaves Tesla and Alphabet's Waymo as leading contenders in the race for autonomous ride-hailing dominance.
Investor Confidence:
- The setbacks at Cruise highlight the challenges in scaling robotaxi operations, raising questions about the viability of the sector in the near term.
Broader Tech Impact:
- As AI and robotics innovation continue, the competitive landscape may favor tech firms with deeper resources and proven scalability.
Key Takeaways:
- Microsoft's setback underscores the risks of investing in emerging technologies like autonomous vehicles, even for tech giants.
- Tesla and Alphabet solidify their leadership in the robotaxi race, with market optimism favoring their AI-driven advancements.
- The disruption potential for traditional ride-hailing platforms like Uber and Lyft is significant, urging them to innovate or risk losing market share.
This event marks a pivotal moment in the robotaxi market, with significant ramifications for investors, automakers, and technology leaders alike.
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