Slow trading on cotton market

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KARACHI : Cotton market remained devoid of activity as leading spinners preferred to stay on the sidelines owing to sluggish cotton yarn demand and liquidity crunch faced by trade and industry on Thursday.

According to floor brokers, the market lacked buying activity because most of the business and industrial establishments have to clear customs duty and other taxes ahead of fiscal closing on June 30. In addition, the pressure exerted by the revenue agency on trade and industry to recover taxes has created liquidity crunch in markets.

However, the sector is critical over FBRs approach of recovering taxes while still holding back the outstanding payments of rebate and refunds belonging to the trade and industry sector.

Apart from that, the recent rains in some parts of Punjab and Sindh have been very encouraging for the standing cotton crop to get mature.

The New York cotton market reeled back where all future contracts finished with moderate losses. The Karachi Cotton Association (KCA) spot rates remained unchanged.

The following deals changed hands on ready counter on Thursday: 400 bales, Shahdadpur, at Rs6,400, 200 bales, Sanghar, at Rs6,450 (conditional), 200 bales, Kotri, at Rs6,400, 200 bales, Ghotki, at Rs6,100 and 400 bales, Mehrabpur, at Rs6,200.




Courtesy: dawn


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