October 13, 2002	Sunday	Sha'aban 6, 1423

KARACHI, Oct 12: Normal trading activity was resumed on the cotton market on Saturday as spinners covered positions apparently after having a fair idea of the post-election political scenario.

Brokers apprehension about a post-election standoff at least for the next couple of sessions did not prove correct as spinners holding short positions did not toe the general line of political whispering.

After having lost two sessions, including the one on election day and and other on post-election fears, both spinners and mills, notably those holding short positions, declined to stay away, they added.

As a result, an active business was witnessed on the ready counter, which also included a big-lot of 3,000 bales from a southern Punjab cotton ginnery.

Although leading spinners and mills are divided over the political situation until the power is transferred to the elected members, they have decided in unison not be guided by the undercurrent of day-to-day political developments, including some negative ones.

“We have to meet our shipment deadlines for textiles if we have to stay on the export market,” Spinners said while commenting on the resumption of normal trade activities, adding “any delay could well mean a loss of a foreign outlet.”

Ginners welcomed the re-entry of spinners into the market followed by active short-covering around the previous levels as they too ill-afford long unsold positions because of liquidity problems.

Meanwhile, reports coming from the cotton belt indicate that picking operations of phutti are expected to resume by the next couple of days and that will eliminate pressure on ready supplies.

The cargo haulers are also expected to be back on the roads as there is now threat of impounding by police for election duties and lint purchased will reach the mills within the same day.

Official spot rates did not show any change and were quoted at the previous level in line with those at which ready business is being transacted.

New York cotton futures on the other hand remained under pressure and fell further by 0.70 and 0.51 cents per lb at 42.84 and 45.50 cents per lb for both the ruling December and the distant March contracts, respectively.

Ready business was brisk as till late in the evening about 8,000 bales changed hands as under:

SINDH TYPE: 600 bales from Nawabshah at Rs2,030; 400 bales, Mirpukhas at Rs1,950; 200 bales, Kot Ghulam Muhammad at Rs1,950; 400 bales, Sakrand at Rs2,025; 200 bales, Shahpur Chakkar at Rs2,000; 400 bales, Daultpur at Rs2,025; and 500 bales of Moro also at Rs2,025.

PUNJAB VARIETY: 3,000 bales of Bahawalpur at Rs2,000; 400 bales, Muridwala at Rs2,000; 200 bales, Mian Channu at Rs2,005; 200 bales, Khanpur at Rs2,000; 200 bales, Jehania at Rs2,000; and 200 bales, Moongi Bungla at also at Rs2,000.