KUALA LUMPUR, May 5 — The rubber market ended higher today after a five-day long weekend in conjunction with the Labour Day and Hari Raya Aidilfitri celebrations, a dealer said.
She said the local market was supported by gains in oil prices and positive sentiment from the US Federal Reserve (Fed) rate hikes, amid mixed advice from regional rubber futures markets.
“Oil prices edged higher on Thursday as a European Union proposal for new sanctions against Russia, including an embargo on crude oil in six months, offset concerns over (lower) Chinese oil demand.
“Meanwhile, the Organisation of the Petroleum Exporting Countries and allied producers (OPEC+) are expected to agree to raise production targets by 432,000 barrels per day,” she said.
On US interest rate, it was reported that the US Fed chairman Jerome Powell said policymakers were ready to approve additional half-percentage-point rate hikes in June and July. The US central bank this week raised its benchmark interest rate by a half-percentage point to a range of between 0.75 and 1.0 per cent.
The dealer said, nevertheless, further gains were capped by weaker China economic data as its factory activity contracted at a steeper pace in April as well as a stronger ringgit against the US dollar.
At 5.11 pm, the local note appreciated to 4.3450/3490 versus the greenback from Friday’s close of 4.3520/3570.
Meanwhile, the Malaysian Rubber Board’s (MRB) price for Standard Malaysian Rubber 20 (SMR 20) rose 6.0 sen to 703.5 sen a kilogramme (kg) while latex-in-bulk increased 1.5 sen to 652.5 sen per kg.
At 5 pm, the MRB’s closing price for SMR 20 stood at 695.5 sen per kg while latex-in-bulk was at 650.5 sen per kg. — Bernama
