Rubber Market Ends Higher On Firmer Oil Prices, Positive US Data

By K. Naveen Prabu

KUALA LUMPUR, Aug 12 (Bernama) -- The Kuala Lumpur rubber market ended higher on Wednesday, supported by firmer crude oil prices, a dealer said.

He said oil prices rose as fading hopes for a United States-Iran peace deal heightened concerns over potential supply disruptions in West Asia.

At the time of writing, Brent crude jumped by 0.69 per cent to US$89.52 per barrel.

Positive US economic data underpinned market sentiment, the dealer said.

“US small-business optimism rose 2.4 points to 99.8 in July, reaching an 11-month high and signalling improved economic confidence,” he told Bernama.

Nevertheless, weak domestic Chinese car sales capped gains, the dealer said.

“China's domestic car sales fell 21.1 per cent in July, marking a 10th consecutive monthly decline, while vehicle exports surged 88.2 per cent year-on-year,” he said.

At 3 pm, the price of Standard Malaysian Rubber 20 (SMR 20) rose by 7.50 sen to 917.50 sen per kilogramme (kg) while latex in bulk remained unchanged at 692.5 sen per kg.

-- BERNAMA