KARACHI, Jan 16: Cotton market on Tuesday maintained a bullish trend as spinners and mills again indulged in panic buying but ginners appear to be a bit selective anticipating further increase in prices.

An idea of bull market may well be had from the fact that some of the spinners again indulged in bit-lot business including a 5,000 bales lot from the D.G.Khan ginneries, floor brokers said.

Bulk of the mill buying again remained centered around fine lots from upper Sindh and southern Punjab ginneries as spinners need it to spin higher counts of cotton yarn for both local foreign markets, they said.

The increase in mill buying ahead of the arrival figures of phutti for the fortnight ended Jan 15, could well prove crucial for the future price outlook, market sources said.

“Both ginners and the spinners are awaiting them despite the fact that both have a fair idea of the total crop,” they said “but both need them to adopt future line of action regarding prices.”

Meanwhile, reports originating from the textile sector are not too encouraging as some problems on the export front continue to have negative impact on foreign sales.

However, mills did not slow down their off-take of lint on the perception that hoping improvement on the export front and an increase in prices in line with the local rates, a leading spinner said.

Local brokers said some of the ginneries both in central Sindh and Punjab have shut down their seasonal operations and are awaiting the sale of their lint stocks amid hopes of further increase in prices.

Official spot rates were firmly held at the overnight level of Rs2,525 but most of the fine lots were done above them in the ready section.

Another 15,000 bales both from the Sindh and the Punjab ginneries changed hands as under: 3,000 bales, upper Sindh at Rs2,575, 5,000 bales, D.G.Khan at Rs2,500 to 2,600, 1,000 bales, Haroonabad at 2,500, 400 bales, Khanpur at 2,585 and 200 bales, Rahimyar Khan at 2,600.