Spot rubber suffers setback

Print this page Posted on : 05-29-2008 by recycleinme.com

Spot rubber nose- dived on Wednesday. RSS 4 declined to Rs 130 from Rs 134.50 a kg on panic selling from dealers and small traders. The market appeared highly speculative making sharp gains and losses within a few trading sessions, sources said. The volumes were better. “ The market will try for a comeback soon and the most important level to watch is the next peak. Technically speaking, the market might incur heavy losses if it fails to break above the previous life time high during the next attempt ’’, said Mr. B. Rajashekaran, Stock Broker ( Cochin Stock Exchange) and Planter. “ The present trend in rubber reminds me of the ’ Harashad Metha times’ in stock market which lacked even its reasoning power ’’ he added.

The June futures for RSS 3 weakened to ¥ 332.9 ( Rs 135.77) from ¥ 336, July to ¥ 332.1 ( 334.2), August to ¥ 333.8 ( 335.5), September to ¥ 334.1 ( 335.9), October to ¥ 335.3 ( 338.1) and November to ¥ 337.7 ( 341.3) a kg at TOCOM. The grade ( spot) improved to Rs 136.87 ( 136.21) a kg at Bangkok. Spot prices were ( Rs/ kg): RSS- 4: 130 ( 134.50); RSS- 5: 125 ( 129); ungraded: 120 ( 123.25); ISNR 20: 121 ( 123.50) and latex 60 per cent: 82 ( 85).

Source : Business Line