KUALA LUMPUR, Sept 28 (Bernama) -- Bursa Malaysia ended marginally lower on Monday amid selling activity as the market lacked fresh catalysts to spur investors’ buying interest, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.60 points, or 0.09 per cent, to 1,670.02, from Friday’s close of 1,671.62. The benchmark index, which opened 0.93 of-a-point higher at 1,672.55, moved between 1,668.61 and 1,674.11 throughout the trading session. Market breadth was negative as losers surpassed gainers 748 to 388, while 517 counters were unchanged, 1,271 untraded and 91 suspended. Turnover slipped to 3.11 billion units worth RM2.40 billion from 4.07 billion units valued at RM2.69 billion on Friday.
The recent imposition of substantial U.S. tariffs has significantly impacted major technology companies, notably Apple (AAPL), Nvidia (NVDA), and Tesla (TSLA). These companies have experienced sharp declines in their stock prices, leading to heightened activity in their options trading.
Apple's stock dropped over 9%, resulting in a $311 billion loss in market capitalization. This decline is primarily due to the newly announced 54% tariff on Chinese imports, which heavily affects Apple's supply chain.
Sources: New York Post, MarketWatch
Nvidia and Tesla also faced significant downturns, with Nvidia's stock falling 7.8% and Tesla's decreasing by 5.5%. These declines are attributed to broader market reactions to the tariffs, which have raised concerns about increased production costs and potential supply chain disruptions.
Source: MarketWatch
The options market has responded with increased activity for these companies. Nvidia options saw a total volume of 3.17 million contracts, making it the most actively traded stock option. Tesla followed with 2.69 million options traded, and Apple had 990,790 options contracts exchanged.
Source: Moomoo
Investors are employing various strategies to hedge against the volatility introduced by the tariffs. Some are turning to sector-based ETFs, which offer diversified exposure and can mitigate risks associated with specific companies. Others are utilizing options strategies, such as protective puts and covered calls, to manage potential losses and generate income during periods of market instability.
Source: Advisor Perspectives
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