By Zufazlin Baharuddin
KUALA LUMPUR, Oct 18 (Bernama) — The Kuala Lumpur rubber market closed higher today, supported by a rebound in benchmark crude oil prices and an increase in Shanghai rubber futures amid concerns over limited natural rubber supply caused by adverse weather in producing countries.
A dealer told Bernama that Japanese rubber futures rose for the second consecutive session on Friday and were on track to post weekly gains, buoyed by better-than-expected economic data from top consumer China and a weaker yen.
He added that positive economic data from China and the United States also bolstered market sentiment.
According to the National Bureau of Statistics, China’s industrial output grew 5.4 per cent in September from a year earlier, accelerating from a 4.5 per cent rise in August.
In the US, business inventories increased by 0.3 per cent in August, driven by higher retail stocks, while retail sales advanced by 0.4 per cent in September, picking up from an unrevised 0.1 per cent gain in August.
“Nevertheless, further gains (in the local rubber market) were capped as the ringgit strengthened against the US dollar,” he added.
The Malaysian Rubber Board reported that the price of Standard Malaysian Rubber 20 (SMR 20) rose by 17 sen to 872 sen per kilogramme, while latex-in-bulk increased by two sen to 757.5 sen per kilogramme.
At 5 pm, SMR 20 stood at 871 sen per kilogramme, while latex-in-bulk was at 757 sen per kilogramme.
— BERNAMA
