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.
After the bell, Texas Instruments (TXN) delivered Q2 earnings that beat expectations, but its Q3 guidance fell short — and that was enough to rattle the entire analog chip space.
Market Reaction:
TXN: -11% after-hours
ADI (Analog Devices): -5.4%
MCHP (Microchip Tech): -6.4%
NXPI (NXP Semi): -5.5%
ON (ON Semi): -6.8%
STM (STMicroelectronics ADRs): -6.9%
What Spooked Investors?
While Q2 was solid, TXN’s Q3 EPS guidance midpoint came in at $1.48 vs $1.51 est.
That small miss matters — because investors are desperate for signs of a robust chip rebound, especially after a weak 2024.
Context from the Call:
Recovery is happening, but slowly and unevenly.
Consumer electronics and industrials show promise.
Auto chips? Still weak.
CEO Haviv Ilan: "Cycle will be less pronounced and more shallow."
Investor Takeaway:
This isn’t about Q3 earnings — it's about the shape of the recovery.
For analog chipmakers, this may be a long, flat road — not a rocket ship. Momentum traders are stepping out, but long-term investors might see value if weakness deepens.
Bottom line:
Analog chips are early-cycle plays — but this cycle might be softer than hoped. Keep an eye on guidance trends from Analog Devices (ADI) and ON Semi in coming weeks.
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