KUALA LUMPUR, Dec 4 (Bernama) -- Bursa Malaysia rallied to close broadly higher on Wednesday amid strong buying interests mainly in utility and technology stocks, with the benchmark index gaining 0.44 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 7.13 points to 1,614.09 from Tuesday’s close of 1,606.96. The index opened marginally higher at 1,606.97 and moved between 1,606.53 and 1,616.03 throughout the day. Advancers thumped decliners 727 to 381 on the broader market, with 522 counters unchanged, 781 untraded and 10 suspended. Turnover advanced to 3.60 billion units valued at RM3.30 billion versus 3.32 billion units valued at RM3.30 billion on Tuesday.
Tesla (TSLA.US): Riding High on FSD Hype
- Stock Movement: Tesla's stock surged 3% in Monday's trading session.
- Options Activity:
- Most Traded Calls: $360 strike price expiring Dec. 6, with:
- Volume: 122,601 contracts.
- Open Interest: 44,139 contracts.
- Investors are enthusiastic about Tesla’s Full Self-Driving (FSD) update, which is seen as a significant step toward CEO Elon Musk’s Robotaxi vision.
Analyst Update
- Stifel Analyst Stephen Gengaro:
- Raised Tesla’s stock price target, now the highest on Wall Street, citing FSD's AI-driven potential.
- FSD is expected to play a pivotal role in Tesla’s long-term growth narrative.
Legal Developments
- Elon Musk’s Pay Package:
- A Delaware judge reaffirmed that Tesla must rescind Musk’s multibillion-dollar pay package, rejecting an appeal from Musk’s attorneys.
Unusual Options Activity: Super Micro Computer (SMCI.US)
- Puts Activity:
- $42 strike puts topped volume-to-open-interest rankings with:
- Volume/Interest Ratio: 165.5x.
- Contracts Traded: 17,546 contracts.
- This indicates heightened bearish sentiment or hedging activity on the stock.
Sector & Index ETF Trends
- The options market saw notable activity across active sector ETFs and indices, reflecting the broader market’s mixed sentiment as traders positioned themselves for December.
Investor Takeaway
- Tesla’s FSD rollout continues to bolster investor optimism, with strong options activity signaling bullish sentiment.
- Legal challenges surrounding Musk’s pay package may bring additional headlines, though the market appears unfazed.
- Super Micro Computer’s unusual options activity warrants closer observation for potential bearish catalysts.
Keep an eye on Tesla’s progress in AI-driven initiatives and broader market reactions to this week's economic and corporate updates.
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