Sizeable business activity was seen on the cotton market on Thursday in process of post-mini budget session, dealers said. The official spot rate was unchanged at Rs 8,700, they added. In the ready session, approximately 11000 bales of cotton changed hands between Rs 7850-8900, they said. Prices of seed cotton in Sindh and Punjab were at Rs 3000-3700 and in Balochistan, rates of seed cotton were at Rs 3200-3700, they said.
Commenting on the mini-budget 2019, cotton analyst Naseem Usman said that traders and businessmen are satisfied over the incentives, announced to give boost to the economy. At the same time, textile sector is disturbed as the government did not announce SRO in the mini-budget, he said and adding that recently, the government has removed import duty on cotton, but without announcement of SRO, how textile sector can take advantage of the opportunity.
On Wednesday, Finance Minister Asad Umar unveiled a package of measures to boost exports and investment and help Islamabad address a severe balance of payments squeeze that has forced it to turn to the International Monetary Fund (IMF) for help. Announcing measures to cut red tape, lower taxes for small and medium-sized businesses and cutting taxes on imports of industrial raw materials, he said the government had to improve conditions for local businesses to bring its public finances under control.
Managing Director of Pakistan Stock Exchange (PSX) Richard Morin hailed the government for presenting the Finance Supplementary Budget 2019 and expressed hope it will help to attract the foreign investors besides strengthen the national economy. Stock market showed bullish sentiment, which is a good sign, other brokers said. Cotton prices were higher on the global markets, they said.
The following deals reported: 400 bales of cotton from Mirpur Mathelo at Rs 8800, 2000 bales from Saleh Pat at Rs 8700, 4400 bales from Khairpur at Rs 8300/8400, 1000 bales from Khanpur at Rs 8900, 200 bales from Mianwali at Rs 8250, 404 bales from Maroot at Rs 8200, 1000 bales from Fort Abbas at Rs 7900/8100, 600 bales from Yazman Mandi at Rs 7900, 400 bales from Haroonabd at Rs 7850 and 400 bales from Chistian at Rs 7850, they said.
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The KCA Official Spot Rate for Local Dealings in Pakistan Rupees
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FOR BASE GRADE 3 STAPLE LENGTH 1-1/16"
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MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
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Rate Ex-Gin Upcountry Spot Rate Spot Rate Difference
For Price Ex-Karachi Ex. KHI. As Ex-Karachi
on 23-01-2019
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37.324 kg 8,700 160 8,860 8,860 NIL
Equivalent
40 kgs 9,324 171 9,495 9,495 NIL
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