KARACHI: Revival of buying interest on Tuesday as many leading spinners rushed back to replenish stocks helped cotton prices surge.

Factors including UAE’s support fund for the country’s depleting foreign exchange reserves helped build confidence. Another positive development is the participation of a large number of Pakistani textile producers in Heimtextil — the world’s largest textile fair — at Frankfurt from Jan 8 to 11.

Internationally, negotiations between US-China over tariffs seem to be heading in the right direction and are likely to have a positive impact on global trade.

The improvement in world leading cotton markets also helped induce sentiment as New York, Chinese and Indian cotton closed higher.

The Karachi Cotton Association (KCA) spot rates were firm at overnight level at Rs8,700 per maund.

Trading on ready counter was fairly moderate and a surge in price was also witnessed. The following deals were reported to have changed hands: 1,000 bales, station Daharki, at Rs9,075; 800 bales, Rajanpur, at Rs9,000; 400 bales, Khan­pur, at Rs8,800; 1,000 bales, Alipur East, at Rs8,050; 400 bales, Bahawalpur, at Rs8,050; 1,000 bales, Haroonabad, at Rs8,000; 400 bales, Chishtian, at Rs8,000; and 400 bales, Layyah, at Rs7,800.

Published in Dawn, January 9th, 2019