Rubber Market Ends Lower In Tandem With Lower Regional Rubber Futures
By Nur Athirah Mohd Shaharuddin
KUALA LUMPUR, Nov 11 (Bernama) -- The Kuala Lumpur rubber market ended lower on Monday in tandem with a downtrend in the regional rubber futures market, a dealer said.
She said the underwhelming Chinese stimulus dragged down market sentiment.
“Nevertheless, further losses were capped by the supply disruption due to adverse weather conditions in Thailand coupled with an uptick in the automobile sector,” she told Bernama.
The dealer said Japanese rubber futures edged lower on Monday as Beijing’s latest stimulus package left investors disappointed across markets, although stronger automobile sales in top consumer China limited declines.
She said it was reported that China’s National People’s Congress approved about 10 trillion yuan (RM 1 = 1.64 yuan) in new debt measures aimed at aiding local governments, but the move disappointed investors hoping for more targeted fiscal stimulus.
According to the China Passenger Car Association (CPCA), China’s passenger vehicle sales jumped 11.2 per cent in October year-on-year, the second straight monthly rise and the fastest growth since January.
“Sales in the world’s largest auto market totalled 2.28 million vehicles last month and increased three per cent to 17.99 million for the first 10 months of the year,” she added.
Meanwhile, citing the Thai Meteorological Department (TMD), the dealer said heavy rain, flash floods and overflows are expected in South Thailand.
“The southernmost six provinces in Thailand were put on a ‘Red’ alert on Monday,” she said.
According to the Malaysian Rubber Board, the price of Standard Malaysian Rubber 20 (SMR 20) declined by 8.5 sen to 877.50 sen per kilogramme (kg), while latex in bulk fell by 2.0 sen to 658.00 per kg.
At 5 pm, SMR 20 stood at 874.50 sen per kg, while latex in bulk was at 661.00 sen per kg.
-- BERNAMA