The Malaysian rubber market is expected to undergo a technical correction this week after its recent gains.
Investors are also expected to take a breather from the market as the commodity has risen to unrealistic levels.
The market will continue to be affected by the escalating unrest in Libya and surging oil prices that have contributed to the lack of buyers enthusiasm for the commodity, dealers said.
“Prices will remain on the downside and succumb to selling pressure,” a dealer said, adding that some investors preferred to be neutral and sit on the sidelines, for prices to retreat.
On a week-to-week basis, the Malaysia Rubber Board (MRB) physical price for tyre-grade SMR 20 declined 74.5 sen to 1,557.5 sen per kg from 1,632 sen per kg registered previous Friday.
Latex-in-bulk declined 28 sen to 1,064 sen from 1,092 sen previously. Meanwhile, MRB's official price for tyre-grade SMR 20 fell 77.5 sen to 1,550.5 sen per kg from 1,628 sen per kg. Latex-in-bulk fell 32.5 sen to 1,059 sen per kg from 1,091.5 sen per kg registered previous Friday