SMR 20 ENDS HIGHER ON REGIONAL RUBBER FUTURES UPTREND

By Nur Athirah Mohd Shaharuddin

KUALA LUMPUR, Feb 14 (Bernama) -- Standard Malaysian Rubber 20 (SMR 20) closed higher today, supported by an uptrend in the regional rubber futures markets as traders reacted positively to the delay in the United States (US) trade tariff implementation, a dealer said.

She said market sentiment was also buoyed by rising expectations of a natural rubber (NR) supply shortage due to the off-peak season.

“The market was further lifted by the Chinese government’s announcement of stimulus measures to boost economic performance, coupled with gains in crude oil prices,” she told Bernama.

She noted that Japanese rubber futures rebounded on Friday but were still set to end the week lower, as traders weighed the prospects of weaker supply from Asian producers against global tariff concerns.

Meanwhile, oil prices rose due to increasing fuel demand and expectations that the US’s proposed global reciprocal tariffs would not take effect until April, allowing more time to avoid a trade war.

“The People’s Bank of China announced its intention to adjust monetary policy at the right time to support the economy, which is currently facing escalating external challenges,” the dealer added.

Total NR supply in China has shrunk significantly as overseas production enters its off-peak season, she said.

The Malaysian Rubber Board reported that at 3 pm, SMR 20 surged by 9.5 sen to 921 sen per kilogramme (kg), while latex in bulk inched down by three sen to 687 sen per kg.

-- BERNAMA