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Cotton market lacks
lustre
KARACHI- Cotton market on Friday
passed through a relatively dull session as both the buyers
and the sellers awaited some positive news from the Islamabad
meeting and did not indulge in fresh trading.
The session, therefore, ended on an insipid note as ginners
were not inclined to make fresh offers until the official word
from the Pakistan Ginners Association (PCGA), high-ups is
known about the decisions arrived at the Islamabad meeting,
dealers said. However, some of the local spinners who did not
resume fresh buying during the post-holiday trading week were
said to be in the market but there were not many sellers.
Floor brokers said whatever assurance the higher authorities
may have given the ginners about the solution of the current
crisis of processed glut, one thing appears certain the market
direction will largely depend on the cooperation of the
spinners and their resolve to resume normal buying operations.
"Reports that the TCP has purchased about 0.3 million bales
during its current operation was a positive development and
imparted a strength to the underlying sentiment", they added.
But as the unsold stock is larger than the market perceptions
its positive impact is not that visible for the near-term,
they say.
They said a good beginning has already been made and the next
couple of sessions could witness a perceptible change in the
market psychology as spinners are expected to follow suit
fearing further increase in prices.
Spinners say the world textile outlook is expected to change
significantly during the current quarter starting from March
1, thanks to liberalization of imports by the European Union
and the US.
"The export of textiles could rise by about seven per cent
during the current quarter, which could well mean larger lint
intake and an increase in prices", they added.
It was perhaps because of this perception that spinners are
willing to pay more for the lint offered on forward basis,
brokers said.
For the third session in a row, ready offtake remained slow
but reports coming from the Punjab ginneries say about 3,000
bales changed hands.
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The following are Friday's new crop Karachi Cotton
Association (KCA) official spot rates for local dealings
in Pak rupees for base grade 3 staple length 1-1/32"
micronair value between 3.8 to 4.9 NCL. |
|
Rate for |
Exgin price |
Ex-gin price
including Sales Tax |
Upcountry Expenses |
Spot rate ex-Karachi
including Sales Tax @ 15% |
|
37.32 kgs |
1,575 |
1,811.25 |
50 |
1,861.25 |
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Equivalent |
|
40 kgs |
1,688 |
1,941.20 |
50 |
1,991.20 |
courtesy Daily The News, 1
March, 2002
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Pakissan.com;
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