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Malaysian rubber extends gain at close on covering

KUALA LUMPUR: Rubber prices extended gains at the close on short covering ahead of the weekend coupled with persistent Chinese interest and higher prices in Tokyo, dealers said.

They said concern about supply tightness due to rain in some key growing areas also underpinned sentiment.

China made further enquiries for SMR20 but no trade has been reported today. It took a fair quantity on Thursday.

"We are expecting more purchases from the Chinese," said one dealer. "Their persistent enquiries despite rising prices show that they really need to buy."

September SMR20 buyer closed up two cents at 307 cents ($1.23) a kg while September RSS1 buyer was up 1.50 cents at 321.50 cents ($1.29) a kg.

INRO five-day moving average price for Aug 17 was 242.08 Malaysian/Singapore cents a kg against 241.32 for Aug 16. The daily indicator price was 244.01 cents versus 241.80. -Reuter