Meanwhile, the Malaysian Rubber Board (MRB) price of Standard Malaysian Rubber 20 (SMR 20) rose 6.0 sens to 703.5 sens per kilogram. ― Picture by Yusof Mat Isa
KUALA LUMPUR, May 5 – The rubber market closed higher today after a five-day long weekend combined with Labor Day and Hari Raya Aidilfitri celebrations, a trader said.
She said the local market was supported by rising oil prices and positive sentiment from the US Federal Reserve’s (Fed) rate hikes amid mixed advice from regional rubber futures markets.
“Oil prices rose modestly on Thursday as a European Union proposal for new sanctions against Russia, including an embargo on crude oil in six months, offset concerns about (lower) Chinese oil demand.
“Meanwhile, the Organization of Petroleum Exporting Countries and Allied Producers (OPEC+) is expected to agree to raise production targets by 432,000 barrels per day,” she said.
On the US interest rate, it was reported that Federal Reserve Chair Jerome Powell said policymakers were ready to approve further rate hikes of half a percentage point in June and July. The US Federal Reserve this week raised its key interest rate by half a percentage point to a range between 0.75 and 1.0 percent.
However, the trader said further gains were limited by weaker economic data out of China as factory activity fell more sharply in April and a stronger ringgit against the US dollar.
As of 5:11 p.m., the local note rose to 4.3450/3490 against the greenback from Friday’s close of 4.3520/3570.
Meanwhile, the Malaysian Rubber Board (MRB) price of Standard Malaysian Rubber 20 (SMR 20) rose 6.0 sens to 703.5 sens per kilogram (kg), while bulk latex rose 1.5 sens to 652.5 Sen per kg increased.
At 17:00 the MRB closing price for SMR 20 was 695.5 sens per kg, while latex in bulk was 650.5 sens per kg. — Bernama
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