KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
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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