KUALA LUMPUR, Jan 7 (Bernama) -- Bursa Malaysia’s benchmark index rebounded from earlier losses to close at its intraday high on Wednesday, gaining 0.27 per cent in late trading as buying interest returned to selected heavyweights. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) advanced 4.48 points to 1,676.83 from Tuesday’s close of 1,672.35. The benchmark index opened 0.88 of-a-point lower at 1,671.47 and subsequently hit a low of 1,665.94 during the mid-morning session before gaining momentum toward closing. On the broader market, losers led gainers by 565 to 512, while some 526 counters were unchanged, 1,046 untraded, and 10 suspended. Turnover improved to 2.73 billion units worth RM2.76 billion versus Tuesday’s 2.66 billion units worth RM2.76 billion. Dealers said that investors were cautious following geopolitical developments in Asia.
Shares of GameStop (GME) fell by 8.3% to $26 in extended trading after the video game retailer announced a $1.3 billion convertible bond deal aimed at raising capital to purchase Bitcoin (BTC).
Key Points:
Stock Performance: GameStop shares rose 11.7% during regular trading, closing at $28.36 after the company revealed plans to invest in Bitcoin.
Convertible Bond Offering: GameStop plans to offer $1.3 billion in 0% 5-year convertible bonds privately to raise funds.
Market Cap: The company’s market cap stands at approximately $12.7 billion, according to LSEG data.
Year-to-Date Performance: While GameStop’s stock is down 9.5% year-to-date, it has gained more than 80% in the past 12 months.
Market Reaction:
Despite the rise in GameStop's stock earlier in the day, the announcement of the capital raise led to a significant drop in shares after-hours, reflecting investor concerns about the company's pivot towards cryptocurrency investments.
GameStop's foray into the digital asset space is seen as a bold move that could reshape the company’s future, but the reaction shows how investors remain cautious amid this high-risk venture.
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