KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
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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