25 January 2005	Tuesday	14 Zilhaj 1425

KARACHI, Jan 24: The post-holiday session on the cotton market was listless as both buyers and sellers remained busy in exchanging eid greetings rather than indulging in physical trading.

Some of the local mills whose stock position was not that strong because of financial constraints, however, offered to buy stray lots to supplement their daily intake but ginners were in no mood to oblige, dealers said.

They said the post-eid holiday trading session witnessed an increase of Rs25 to Rs50 per maund in prices depending on quality of lint and that was one of the reasons behind the sluggishness.

Spinners were, however, not inclined to bid at the higher asking prices in the absence of TCP as a second buyer, which has already purchased about 2.7m bales to support the market and is in the process of taking delivery from ginners into its gowdowns in the city and some upcountry trading centres.

The TCP for the time being may stay away from cotton market and would again start buying if prices decline from the support levels, dealers said. "Unlike the previous years, the market is not the victim of production glut as spinners and mills are active buyers around the current levels and trying to grab the floating stock to meet their annual consumption needs", they said.

Floor brokers said the local market could heat up in the coming weeks in line with the foreign trading centres where amid reports of higher global consumption and a steady increase in mill intake.

Although New York cotton futures still failed to set a definite price trend and were fluctuating between the range of 42 and 46 cents per lb, higher consumption predictions could push them higher above the barrier of 50 cents before the year is out, they said.

Official spot rates were, therefore, firmly held at the last levels in the absence of falling physical business. Ready off-take was nil but unconfirmed reports say about 2,000 bales changed hands slightly above the pre-eid holiday rates.