Kuala Lumpur Rubber Market Ends Mixed, Tracking Regional Futures

By Muhammad Fawwaz Thaqif Nor Afandi

KUALA LUMPUR, May 25 (Bernama) -- The Kuala Lumpur rubber market ended mixed on Monday while tracking the performance of regional rubber futures markets, a dealer said.

He said market sentiment was also weighed down by lower benchmark crude oil prices and weaker United States (US) economic data amid expectations of an improving supply outlook in major producing countries such as Thailand and Indonesia.

"Japanese rubber futures fell on Monday, pressured by lower crude oil prices amid optimism over a potential US-Iran peace deal.

"Oil prices hit two-week lows on Monday on hopes of a potential US-Iran peace agreement despite ongoing tensions involving the Strait of Hormuz," he said.

At the time of writing, Brent crude was down 4.8 per cent to US$98.57 per barrel.

Meanwhile, the dealer added that market sentiment was also affected by the stronger ringgit against the US dollar.

At 8 am, the local currency strengthened to 3.9635/9705 against the greenback from Friday’s close of 3.9655/9700.

“However, further losses were capped by improved market sentiment amid optimism surrounding potential US-Iran peace talks,” he said.

At 3 pm, the price of Standard Malaysian Rubber (SMR) 20 rose 1.5 sen to 890.5 sen per kilogramme (kg), while latex-in-bulk declined two sen to 763 sen per kg.

-- BERNAMA