February 16, 2008	Saturday	Safar 08, 1429

KARACHI, Feb 15: Trading on the cotton market on Friday remained insipid as major trading centres were closed owing to weekly holiday and a good bit of electioneering by some of the leading ginners.

The limit gains in the New York cotton futures on strong speculative buying aided by rumours of entry of China in the world markets in a big way to cover their forward positions owing to pressure on ready supplies was the chief motivating factor behind the price flare-up, market sources said.

The New York cotton futures on Thursday soared by 3 for the matured March contract at 69.91, while the ruling May rose by 2.07 cents at 70.71 per lb, which in turn could have sympathetic bullish impact elsewhere.

Whether or not the local market also turned bullish in sympathy with the global markets will be known by the post-election trading week, dealers said.

Floor brokers said apart from weekly closure, the other inhibiting factor, which contributed to the sluggishness, was reports that both leading ginners and spinners are supporting their respective political candidates after having suspended physical trading.

“The major election battles are expected to be fought in the Punjab and both the ginners and the spinners have a winning stake in the parties they are supporting by all means,” they added.

The activity also received major setback owing to delivery problems as private transport has already been hired by the candidates to transport their voters to the election booths on Monday, they said.

Official spot rates were again firmly held at the last level of Rs3,100 per maund for an average quality lint.

Trading in the ready section was light as some of the brokers reported stray deals for post-election delivery.