KUALA LUMPUR — The Malaysian rubber market will likely trend lower next week due to cautious sentiment surrounding the external economy, just days before the US presidential race. A dealer said traders were refraining from taking risks ahead of the presidential election.
“After the presidential race is over and a winner is decided, then there will be a clearer direction for the market. “Furthermore, buying activity is affected by possible high inventories, with rubber inventories in warehouses monitored by the Shanghai Futures Exchange 0.3 per cent higher compared with last Friday,” he added.
For the week just ended, the rubber market was traded mostly mixed due to jitters from the US presidential race. On a Friday-to-Friday basis, the Malaysian Rubber Board’s noon price for tyre-grade SMR 20 fell 6.5 sen to 613.5 sen a kg from 620 sen a kg last Friday, while latex-in-bulk declined five sen to 502 sen a kg from 507 sen a kg previously.
The 5 pm unofficial closing price for SMR 20 was 4.5 sen lower at 615.5 sen a kg from 620 sen a kg last week, while latex-in-bulk decreased five sen to 503 sen a kg from 508 sen a kg.
