KUALA LUMPUR, April 2 (Bernama) -- Bursa Malaysia reversed yesterday's gains to close lower on Thursday, with the key index settling off its lows, as optimism over a swift end to the West Asia conflict faded sharply following US President Donald Trump's speech this morning, which fuelled global risk-off sentiment. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 10.60 points, or 0.62 per cent, to 1,698.30 from Wednesday's close of 1,708.90. The benchmark index opened 3.14 points firmer at 1,712.04, and moved between 1,688.89 and 1,712.80 throughout the day. Market breadth was negative with 744 losers outpacing 374 gainers, while 436 counters were unchanged, 1,094 untraded, and 11 suspended. Turnover slipped to 3.20 billion units worth RM3.50 billion from yesterday’s 3.58 billion units worth RM3.56 billion.
Intel (INTC.US) surged over 10% intraday, after announcing a US$14.2 billion deal to regain full control of a key semiconductor facility in Ireland, reinforcing its long-term AI-driven manufacturing strategy.
Strategic Buyback to Strengthen AI Capacity
Intel will acquire the remaining 49% stake in Fab 34 from Apollo Global Management, taking full ownership of the advanced chip manufacturing plant.
The facility is critical to Intel’s roadmap, producing chips based on Intel 4 and Intel 3 process technologies, including Core Ultra and Xeon 6 processors, which are central to AI and high-performance computing demand.
The move signals Intel’s intent to tighten control over strategic assets as it scales up production capacity to compete in the global AI race.
Financial Impact: Short-Term Debt, Long-Term Gains
The transaction will be funded through:
- Cash reserves (~US$14.3 billion)
- Approximately US$6.5 billion in new debt
Management expects the deal to be earnings accretive over time and to strengthen Intel’s credit profile from 2027 onward, despite near-term debt obligations.
The buyback also reverses a 2024 move where Apollo invested US$11.2 billion for a minority stake, which previously helped Intel preserve capital during heavy investment cycles.
Technical Picture: Uptrend Intact, Momentum Mixed
From a technical standpoint, Intel remains in a strong longer-term uptrend:
- Shares are up ~117% over the past 12 months
- Trading above both 20-day (+6.2%) and 100-day (+11.9%) moving averages
However, momentum indicators are mixed:
- RSI at ~48 → neutral, not overbought
- MACD remains bearish, suggesting limited short-term momentum
Key levels:
- Resistance: US$49
- Support: US$42.50
Earnings Outlook Remains a Near-Term Risk
The next key catalyst will be Intel’s earnings report on April 23.
- Expected EPS: -US$0.04 (loss)
- Expected Revenue: US$12.29 billion (YoY decline)
Analyst sentiment remains cautious, with a “Hold” consensus rating and an average price target of US$44.50, indicating limited upside from current levels.
Investor Takeaways
- Intel’s US$14B buyback deal strengthens its AI manufacturing capabilities and strategic control.
- The transaction is expected to be long-term earnings accretive, despite near-term debt increase.
- The stock remains in a strong uptrend, but technical signals are mixed.
- Upcoming earnings (April 23) will be a critical catalyst amid expectations of weaker profitability.
- Intel’s positioning highlights its ambition to compete more aggressively in the AI semiconductor market.
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