KUALA LUMPUR, March 10 (Bernama) -- Bursa Malaysia rebounded to end higher today with the benchmark FBM KLCI reclaiming the 1,700 psychological level, supported by improved global sentiment after US President Donald Trump signalled a potential de-escalation of the Iran conflict, alongside Malaysia’s stronger Industrial Production Index (IPI) data. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) increased 27.51 points, or 1.64 per cent, to 1,701.68 from yesterday’s close of 1,674.17. The benchmark index opened 10.68 points higher at 1,684.85, its lowest point today, and hit a high of 1,703.61 in the late afternoon session. Market breadth was positive, with gainers thumping losers 929 to 382. A total of 361 counters were unchanged, 982 untraded and 19 suspended. Turnover declined to 3.60 billion units worth RM3.75 billion from yesterday’s 5.52 billion units worth RM5.87 billion.
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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