Rubber Market Ends Higher On Supply Concerns

By Abdul Hamid A Rahman

KUALA LUMPUR, Sept 30 (Bernama) -- The Kuala Lumpur rubber market ended higher, tracking gains in regional rubber futures markets amid concerns over supply disruptions, said a dealer.

She said adverse weather conditions in Thailand raised supply concerns, as heavy rain and flooding had affected 26 provinces since Sept 16.

“Further severe thunderstorms were forecast for Oct 4–5, potentially disrupting tapping activities,” she told Bernama.

She said improved Chinese manufacturing activity supported market sentiment, with both the official manufacturing purchasing managers’ index (PMI) and the private-sector manufacturing PMI indicating a return to expansion in September.

However, she said gains were partly capped by a stronger ringgit against the US dollar, weaker US consumer confidence, a decline in US job openings, and firming expectations of US interest rate hikes.

At 3 pm, Standard Malaysian Rubber 20 (SMR 20) rose 44.5 sen to 1,055 sen per kilogramme (kg), while bulk latex increased 2.5 sen to 740 sen per kg.

-- BERNAMA