Wednesday, October 5, 2011

Glove makers continue to advance in early trade

KUALA LUMPUR: ''Glove makers extended their gains on Wednesday, Oct 5 following upbeat reports that they would benefit from lower latex prices.

At 9.20am, Top Glove gained 27 sen to RM4.53, Supermax 20 sen to RM3.45, Adventa 10 sen to RM1.78, Hartalega, Kossan and Latexx eight sen each to RM5.53, RM2.94 and RM1.64, while Rubberex added two sen to 68.5 sen.

However, there could be some downside to the stocks, as an unhappy Thailand, which is the world's top rubber producer, warned that it wants to reduce output by 3.5% this year, especially after they have fallen about a third since hitting record in February, according to Reuters on Oct 4.

The news agency also reported Thailand would urge Indonesia and Malaysia to follow suit in a bid to prop up prices.

Tokyo rubber futures plunged to a one-year low around 289 yen (US$3.8) a kg last month on growing fears about the global economy. Rubber futures traded at US$4.1 on Tuesday, off the peak of US$6.4 in February, the news agency said.

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