KARACHI: The cotton market remained devoid of activity despite government’s decision to withdraw five per cent customs duty waiver on import of cotton yarn.

Floor brokers said it would take some time before the markets start stabilising because Finance Minister Ishaq Dar’s assurance to keep the rupee at 98 against the dollar has been taken as a positive development because it would help support exports. The rapid appreciation in the rupee’s value crippled export trade which depressed demand for cotton and cotton yarn, but brokers believe if the rupee stabilises, things would start improving from next week.

They added that already import of Indian cotton has fallen after the currency revaluation by the Indian government which made export costlier. There were strong indications that the country’s economy will start gaining strength in next couple of months.

The New York cotton gave mixed trend where near-future contracts closed easy while far-off contracts made modest gains.

The Karachi Cotton Association (KCA) spot rates were unchanged and trading on ready counter remained extremely slow.

The following transactions were reported on the ready counter: 200 bales, Ghotki, at Rs5,800; 400 bales, Hasilpur, at Rs6,400; and 400 bales, Madrasa, at Rs6,450.