February 9, 2002	Saturday	Ziqa’ad 25, 1422

KARACHI, Feb 8: Cotton market on Friday passed through a relatively quiet session owing partly to a short Friday session and absence of leading spinners.

Most of deals in the ready section were done in line with the overnight levels as ginners held on to their positions anticipating the re-entry of the TCP in the market, dealers said.

But there was no official word from the TCP officials on the developing situation on the cotton front and how to bail out ginners from the current impasse of larger unsold stocks, they added.

However, market sources claim that the prevailing sluggishness in the market may end soon as the demand for Pakistani textiles is expected to receive a needed push after the president’s US visit.

“Unlike the European Commission, the US may not lift quota curbs on the textiles import from Pakistan, it will certainly increase the present annual quantum of the physical shipments,” hopes a leading spinner.

He claims on some insider information that a boost to textile trade with the US is on the agenda of the finance minister, who is expected to accompany the President.

“The lean period in cotton trade may persist for couple of weeks more, but a change for the better is now overdue,” he adds.

But the grower and the ginners, away from the positive developments on the official front, are worried over the falling mill demand and seeking official help from the TCP ease them out from the financial burden tied to unsold stocks.

Meanwhile, resumption of covering operations by the exporters have raised hopes of further pick up in demand from the mills in the coming weeks, but there are no chances of a price war between the spinners and the exporters as the latter is playing safe apparently awaiting some more positive changes in the world demand in a sluggish market.

New York cotton futures failed to touch the high mark of 40 cents per lb as speculative a couple of weeks earlier but are steady around 35 to 36 cents per lb amid minor either-way movement.

Spinners remained in the market till afternoon, but purchased only those lots, which fell in line with their export parity levels.

As a result, only 4,000 bales changed hands, the following being some of the important deals: 500 bales of Shahpur Chakker at Rs1,500, 500 bales, at Rs1,400, 600 bales, Uch Sharif at Rs1,550 and 1,000 bales of Yazman at Rs1,550.