KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.
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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