KUALA LUMPUR, April 8 (Bernama) -- The FTSE Bursa Malaysia KLCI (FBM KLCI) erased earlier gains to close marginally lower on Tuesday as mild bargain hunting activities were offset by cautious mode over ongoing global uncertainties. At 5 pm, the benchmark index slipped 0.24 of-a-point, or 0.02 per cent, to 1,443.56 from yesterday’s close of 1,443.80. The benchmark index opened 7.63 points firmer at 1,451.43 and climbed to as high as 1,454.58 in early trade before retreating to a low of 1,440.89 towards the end of the morning trading session. It then moved in a yo-yo mode during the afternoon session. In contrast, the broader market was positive with gainers outpacing decliners 669 to 367, while 419 counters were unchanged, 894 counters untraded, and nine others suspended. Turnover dwindled to 3.32 billion units valued at RM2.83 billion against 5.35 billion units valued at RM4.67 billion on Monday.
Key Takeaways
Apple (AAPL) shares posted their worst performance in five years, following the announcement of a 54% effective tariff rate on Chinese goods—placing direct pressure on the tech giant's China-reliant supply chain.
Tesla (TSLA) and Nvidia (NVDA) stocks also declined, despite Nvidia not being explicitly targeted. A rare Wall Street downgrade and broader risk-off sentiment added to the selling pressure.
Options market saw a notable uptick in activity, with a surge in call volumes and volatility premiums, particularly for Apple.
Options Market Highlights
| Ticker | Unusual Activity | Comment |
|---|---|---|
| AAPL | $205 Calls | 62,477 contracts traded, 163x volume/open interest ratio – a major spike in bullish bets or hedges |
| NVDA | Elevated put and call volumes | Despite no direct tariff, sentiment weighs on valuation-sensitive tech |
| TSLA | Mixed option flows | Investors repositioning amid tariff risk and regulatory overhang |
Market Sentiment Snapshot
Tariff Fear Trade: Traders are repositioning portfolios with heavier exposure to defensive names and volatility hedges via options.
Volatility Surge: Options premiums rose across tech-heavy ETFs and indexes (e.g., QQQ, SPY) as investors brace for potential further declines.
Liquidity Watch: Increased open interest and elevated volume in key strike zones suggest sustained speculative or protective activity ahead of next week’s economic data and further White House guidance.
Outlook
Investors are advised to monitor implied volatility levels and track shifts in open interest, especially around earnings-sensitive and China-exposed names. Tariff clarity and negotiation developments will be key drivers for next leg of volatility in options markets.
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