KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Intel Corp. (INTC.US) shares climbed after a meeting between CEO Lip-Bu Tan and President Donald Trump appeared to ease recent tensions, potentially opening the door for closer collaboration with Washington.
Key Developments
Tone Shift from Trump – Days after calling for Tan’s resignation over ties to Chinese companies, Trump praised his “amazing success story” and suggested a “path forward.”
Next Steps – Tan to meet with Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent, returning with recommendations next week.
Intel’s Statement – Called the meeting “candid and constructive,” reaffirming commitment to strengthening U.S. technology and manufacturing leadership.
Political & Regulatory Backdrop
Federal Funding at Stake – Intel has received ~$8B from the CHIPS and Science Act—the largest single-company award.
Sen. Tom Cotton’s Concerns – Pressing for answers on Tan’s China-linked associations, warning they could jeopardize funding and compliance with U.S. security regulations.
Cadence Connection – Tan previously led Cadence Design Systems (CDNS.US), which pled guilty to U.S. export violations involving Chinese military-linked institutions.
Strategic Challenges for Intel
Manufacturing Future in Question – Intel is the only U.S. maker of leading-edge semiconductors, but management has hinted it may exit the business if it cannot secure a major external customer for its upcoming process technology.
Ohio Plant Delay – A previously announced domestic manufacturing site—seen as a jobs driver—has already been pushed back.
Turnaround in Progress – Tan, who became CEO in March 2025, is tasked with reversing years of missteps amid increased political scrutiny.
Market Reaction
Stock Movement – +3.7% in Monday’s regular session; up another ~2% after-hours.
Investor Focus – Whether Tan can turn political pressure into government support for Intel’s foundry ambitions, or if scrutiny will hinder its strategic reset.
Comments
Post a Comment