By Engku Shariful Azni Engku Ab Latif
KUALA LUMPUR, Jan 3 (Bernama) -- The local rubber market continued to close lower on Friday, in tandem with a downtrend in the regional rubber futures markets due to underwhelming global factory activity data that signalled a rocky economic outlook, a dealer said.
She said market players were also seen reacting to the possibility of fewer US rate cuts based on the latest economic data.
“Nevertheless, further losses were capped by gains in benchmark crude oil prices and the weaker ringgit against the US dollar, amid supply disruption due to adverse weather conditions in major natural rubber producing countries,” she told Bernama.
The dealer said market sentiment was also boosted by optimism regarding additional government stimulus worldwide to foster economic growth.
She said factory activity in Asia, Europe and the US ended 2024 on a soft note as expectations for the new year soured amid growing trade risks from a second Donald Trump presidency and China's fragile economic recovery.
“The US Manufacturing Purchasing Managers' Index (PMI) has reported a slight contraction at 49.4, reflecting a marginal contraction in the sector,” she added.
At 3 pm, the Malaysian Rubber Board (MRB) reported that the price of Standard Malaysian Rubber (SMR) 20 was down by 12.5 sen to 867 sen per kilogramme (kg), while latex in bulk fell by five sen to 689 sen per kg.
-- BERNAMA
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