Rubber Market Ends Higher On Optimism Over Potential US-Iran Diplomatic Breathrough

By Muhammad Fawwaz Thaqif Nor Afandi

KUALA LUMPUR, April 15 (Bernama) -- The Kuala Lumpur rubber market ended higher on Wednesday, lifted by optimism over a potential United States-Iran diplomatic breakthrough, said a dealer.

He said global sentiment is improving on renewed optimism over potential US-Iran diplomatic engagement.

“Asian stocks extended gains on Wednesday, led by technology shares tracking Wall Street, amid cautious optimism over potential US-Iran diplomatic progress,” he told Bernama.

However, the dealer said further gains were capped by a stronger ringgit against the US dollar, amid expectations of improving raw material supply as the wintering season nears its end.

“Weakening Chinese rubber demand, as tyre factories cut operating rates due to high costs, alongside improving supply as the wintering season ends, is expected to pressure rubber prices in the near term,” he added.

At the opening, the local currency strengthened to 3.9430/9510 against the greenback, from 3.9500/9545 at Tuesday’s close.

At 3 pm, Standard Malaysian Rubber (SMR) 20 rose by 1.5 sen to 814 sen per kilogramme (kg), while latex in bulk increased by 1.5 sen to 769 sen per kg.

-- BERNAMA