Rubber market to be on an upswing

The Malaysian rubber market is expected to be on an upswing next week on a more positive global economic outlook and amid quiet trading, dealers said.

A dealer said demand would receive a boost from strong foreign buying interest with China, the world's biggest rubber consumer, expected to announce a large stimulus package to boost the flagging economy after its National Day on Oct 1.

"This will spur sentiment among the global market players," the dealer added.

The positive developments in Spain's debt crisis, the fourth largest economy in Europe, will also have an impact on the local market next week.

Physical rubber prices are also likely to be influenced by the Tokyo Commodity Exchange and Shanghai Futures Exchange, where the commodity is expected to trend higher.

On a Friday-to-Friday basis, the Malaysian Rubber Board's sellers official physical price for tyre-grade SMR 20 fell 2.5 sen to 872 sen per kg, while latex-in-bulk rose 11 sen to 623.5 sen per kg.

The unofficial sellers' closing price for tyre-grade SMR 20 added 5.5 sen to 880 sen per kg and latex-in-bulk increased 11.5 sen to 626.5 sen per kg.-- BERNAMA