Lint prices resist fresh fall

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KARACHI, May 18: Renewed buying interest helped arrest fresh fall in prices when trading resumed in cotton market on Saturday.

Some spinners were attracted by fallen lint prices and moved in to replenish their stocks.

Besides, the assurance given by Nawaz Sharif to Faisalabad industrialists in a meeting for reducing load shedding by 20 per cent by July this year helped revive some buying interest from spinners, brokers said.

However, the shortage of quality lint and depleted stocks of unsold cotton held by ginners is a cause of concern for many millers who still need substantial quantity of raw material before the arrival of next crop.

Nevertheless, the spinners are in a quandary over building up their stocks in front of worsening power crisis with the rise in mercury throughout the country.

There are strong indications that the victory of the PML (N) in May 11 polls has strengthened the underlying sentiment in most of the markets and trade and industry is confidence that soon the economy will start reviving, brokers said.

Consequently, a surge in cotton yarn demand also helped revive buying in cotton market.

The Karachi Cotton Association (KCA) spot rates remained unchanged and higher volume of trading was recorded on ready counter.

The following transactions were reported to have changed hands on Saturday: 400 bales, Sanghar, at Rs5,800, 200 bales, Nooriabad, at Rs6,000, 200 bales, Rasoolabad, at Rs6,000, 400 bales, Chichawatni (low quality), at Rs4,650, 256 bales, Multan, at Rs5,300.

Courtesy: Nation

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