Rubber Market Ends Lower On Regional Declines

By Fatin Umairah Abdul Hamid

KUALA LUMPUR, May 21 (Bernama) -- The Kuala Lumpur rubber market ended lower on Thursday, weighed down by declines in the regional rubber futures markets and a stronger ringgit against the US dollar amid mixed developments surrounding the West Asia conflict, a dealer said.

The dealer said market sentiment was also dampened by the hawkish stance of US Federal Reserve (Fed) officials, reinforcing concerns that interest rates could remain higher for longer.

The minutes of the Fed’s late-April meeting showed that an increasing number of policymakers were considering interest rate hikes amid rising inflation.

“Nevertheless, further losses were capped by gains in crude oil prices and encouraging developments in the European Union (EU) automotive sector, particularly in electric vehicle demand,” she told Bernama.

Oil prices rose on Thursday as investors monitored peace talks between the United States and Iran, while supply tightness and US inventory drawdowns lent additional support to the market.

At the time of writing, Brent crude oil gained 0.91 per cent to US$105.97 per barrel.

At 3 pm, the price of Standard Malaysian Rubber (SMR) 20 fell seven sen to 887 sen per kilogramme (kg), while latex-in-bulk declined three sen to 767.5 sen per kg.

-- BERNAMA