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.
Credit Watch
Fitch Ratings cut Intel’s credit rating by one notch from BBB+ to BBB on Monday, assigning a negative outlook, as competitive pressure and execution risks cloud the chipmaker's recovery path.
🔻 Intel now sits just two notches above junk status.
“Credit metrics remain weak… stronger markets and product execution are needed within 12–14 months,” — Fitch
What’s Weighing on Intel?
Demand Struggles: Soft PC and enterprise server markets
Rising Competition:
AMD & Qualcomm (PC CPUs)
Broadcom, NXP (semiconductors)
Execution Risks: Uncertainty in product ramp-up success
Leverage Concerns: Need for net debt reduction
Despite these, Fitch acknowledged Intel’s leadership in traditional PCs and servers but flagged its weaker financial structure relative to similarly rated peers.
Liquidity Snapshot (as of Jun 28)
Cash & Equivalents: US$21.2B
Undrawn Credit Lines:
US$7B revolver
US$5B 364-day revolver (due Jan 2026)
Fitch termed the company’s liquidity position “solid.”
Not Alone in the Downgrade
S&P Global: Cut to BBB in Dec 2024
Moody’s: Downgraded senior unsecured debt in Aug 2024
Takeaway
Intel’s slipping credit standing reflects deeper structural headwinds, from product delays to fierce competition. The pressure is now on Intel to revive growth, ship new products successfully, and deleverage its balance sheet — or risk falling closer to junk bond territory.
Risks to Watch
Further rating downgrades if Intel fails to hit performance milestones
Investor concern over debt load amid capex and R&D spending
Increasing bond yields or restricted access to cheap financing
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