KARACHI: Revival of buying interest at the lower level helped cotton prices to record modest gain on Tuesday.
However, underlying sentiment remained depressed owing to poor industrial performance of the major economies of the world.
Floor brokers said that report of huge shortfall in cotton crop, which should have otherwise induced panic buying, failed to influence trading as sentiment remained subdued and activity was confined around short covering.
The fast deteriorating political situation in the Middle East coupled with slower performance of the US and Chinese industrial sectors are having direct impact on smaller economies like Pakistan, they added.
Market reports suggested that lesser number of exhibitors were participating in the world’s biggest textile fair in Frankfurt, Germany, being held from Jan 12 to 14, another indicator of poor performance of world economies.
The slow demand for cotton around the world due to sluggish performance of the textile industry is a major factor which is dampening sentiment, they added.
Since Pakistan imported huge Indian cotton, it directly cushioned their cotton trade.
The world cotton markets remained under pressure where New York cotton closed easy for all the future contracts.
The Karachi Cotton Association (KCA) spot rates were also unchanged at previous level.
Major deals on ready counter were: 600 bales from Sanghar done at Rs5,250, 400 bales Moro at Rs5,200, 400 bales Dharki at Rs5,600, 400 bales Ghotki at Rs5,600, 4,500 bales Khanewal at Rs4,850 to Rs5,300, 400 bales Bahawal Nagar at Rs5,300, 600 bales Yazman Mandi at Rs5,350 to Rs5,400, 2,200 bales Rahimyar Khan at Rs5,600, 2,000 bales Sadiqabad at Rs5,600 to Rs5,650 and 400 bales Sardar Garh at Rs5,600.
Courtesy : Dawn News