Rubber Market Ends Lower After Four-day Rally On Weaker Oil Prices, Stronger Ringgit

By Fatin Umairah Abdul Hamid

KUALA LUMPUR, May 15 (Bernama) -- The Malaysian rubber market snapped a four-day winning streak to close lower on Thursday, weighed down by losses in regional rubber futures markets, a sharp drop in crude oil prices, and the continued strengthening of the ringgit against the US dollar, said a dealer.

The dealer said oil prices fell by over US$1 per barrel on Thursday amid expectations of a potential US-Iran nuclear deal, while a surprise build-up in US crude oil inventories last week further fuelled investor concerns over a supply glut.

Market sentiment was also dampened by lingering uncertainties surrounding US-China trade policies following the 90-day truce, she told Bernama.

“The ringgit strengthened against the US dollar amid concerns over potential trade deals and the Federal Reserve's interest rate path.

“Nevertheless, further losses were capped by the positive progress of the US-China trade truce and an encouraging global auto sales data,” she said.

Meanwhile, as of 3 pm, the Malaysian Rubber Board reported that the price of Standard Malaysian Rubber (SMR) 20 declined by 11 sen to 769 sen per kilogramme (kg), while latex in bulk was down by 4.0 sen to 612 sen per kg.

-- BERNAMA