MALAYSIA: Rubber likely to continue upward momentum

The Malaysian rubber market is likely to continue its upward momentum in the near future buoyed by positive outlook on the global commodity market.

A dealer said the reassurance by the members of the Organization of the Petroleum Exporting Countries on crude oil cut and weaker ringgit against US dollar would provide some support to the market.

He said the anticipation by Toyota Motor Corp that global vehicle sales would rise by one per cent next year signaled higher demand from the car industry moving forward.

“China’s policy of extending the tax cut on small-engine vehicles by one year would further reinforce the increase in vehicle demand and this is also expected to support the rubber market,” he said.

Source: “Bernama” (National News Agency of Malaysia), Kuala Lumpur; 17 Dec 2016

(Syed Rashid Ali, Karachi, Pakistan)