PHYSICAL activity on the Karachi wholesale markets remained relatively slow as the holiday-shortened week witnessed the absence of leading brokers, and some of them failed to secure fresh buying orders both from local commercial houses and upcountry dealers.

Consequently, prices of some essential items were marked lower, and bulk of selling originated from the importers. But as ready demand was on the lower side, prices fell from the previous week's levels, dealers said.

Much of the activity remained confined to the pulses sector as brokerage houses and commercial dealers indulged in alternate bouts of buying and selling causing major price fall on some counters, market sources said.

They said a couple of more ships carrying the commodity are due by next week and if some of the importers decided to push them on the open market, there could be a sharp decline in prices of gram and moong.

But there was a relative quiet on other essential counters, notably wheat and rice in the absence of fresh support from private sector exporters.

Although a rice loader is in the port to load rice against forward sales, prices were firmly held around previous week's higher levels despite steady arrivals from the Sindh markets, they added.

Prices of both IRRI and basmati varieties consolidated previous weeks sharp gains despite a substantial decline in local demand retailers and some wholesalers from other market kept to sidelines and did not make fresh commitments apparently awaiting fall in prices.

Sugar prices on the other hand did not show any major change as supplies of new crop mills remained on the lower side. Millers are said to be holding back larger stock of the new crop in their godowns to keep price above Rs30 per kilo, dealers said.

Prices of industrial raw materials on the other hand remained stable around the previous levels as ready supplies matched the local demand by the processors.

The market decline was led by the pulses sector as leading importers liquidated long positions for no apparent bearish reason. Arrivals of gram and gram dal from the upcountry markets was another bearish factor, triggering selling from the local commercial houses and stockists.

Gram whole, beetle and gram dal suffered fall ranging from Rs50 to Rs100 per bag, while moong and some others fell by Rs100 to 125 per bag.

Urad and peas were exceptions, which came in for stray support and were marked up by Rs25, while other types were traded at previous levels in the absence of active demand.

Among other essentials wheat was quoted around previous levels but sugar prices fluctuated from area to area as new crop supplies from the mills was on the lower side of local demand.

There were, however, no fresh reports about wheat export as private sector exporters are still in the process of export probe. They said local price is much higher than in many other exporting countries, which in turn has made the local stuff in-competitive for the near-term.

Rice prices on the other hand maintained their higher levels owing to higher exports and active covering purchases being made by the exporters against their forward deals. Prices of both IRRI and fine type of basmati were quoted higher during the week despite steady arrivals from the lower Sindh markets.

Prices of major industrial raw materials remained stable around the previous levels under the lead of guar seeds as processors made selective buying followed by reports of damage to new crop owing to late rain.

Among the cereals, bajra came in for stray selling and was marked down by Rs50, while maize, jowar and barley were firmly held at the last levels amid slow ready offtake.

Oilseed sector showed firm trend as prices of major seeds including cottonseed and rapeseed were again held unchanged as supply position remained fairly comfortable.

Major export seeds, notably castor seed did not show much change, but til posted a gain of Rs25 to Rs50 per maund followed by revival of exporters' demand.

Oilcakes ruled unchanged for rapeseed cakes, while cottonseed cakes were traded higher by Rs10 on speculative trading.

—M.A.