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Market Daily Report: Bursa Malaysia's Key Index Ends At Intraday High

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 ...
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Goldman Sachs: Now’s the Time to Hedge with Puts

The U.S. stock market is pushing to record highs despite a fragile economy, prompting Goldman Sachs to suggest put options as a cost-effective hedge against potential declines.

Market Calm Masks Risks

  • The S&P 500 logged its 18th record high of 2025 on Thursday.

  • Economic data shows slowing consumer spending and stubborn inflation.

  • President Trump’s Federal Reserve criticism and unpredictable trade policies add to uncertainty.

  • VIX (fear gauge) has fallen to 14.7, well below its historical average of 19.5.

Why Puts Look Cheap Now

  • Put option pricing is closely tied to market volatility.

  • With VIX low, three-month puts are trading at relatively low premiums.

  • “Markets at all-time highs and low volatility levels provide an attractive opportunity for hedging,” said Goldman’s Arun Prakash.

ETF Opportunities

Goldman recommends three ETFs with above-average economic sensitivity and cheap options pricing:

  1. iShares S&P 500 Growth ETF (IVW) – Puts cost 1.4% of share value.

  2. SPDR S&P Regional Banking ETF (KRE) – Puts cost 3.1%.

  3. VanEck Semiconductor ETF (SMH) – Puts cost 3.3%.

Stock Ideas: Regional Banks

Goldman highlights regional banks as another target for inexpensive hedging:

  • KeyCorp (KEY) – Puts cost 2.1%.

  • Regions Financial (RF) – Puts cost 1.7%.

  • Huntington Bancshares (HBAN) – Puts cost 1.8%.

These banks are less diversified than larger peers and more sensitive to interest-rate changes, making them vulnerable if growth slows.

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