KARACHI, May 23: Amid steady outlook cotton market witnessed moderate activity on Thursday as some positive developments emerging from Islamabad on political front gave confidence to the trade and industry sector.

With less than ten days left for the new government to takeover the reins of the country the trade and industry is quite encouraged with developments that have taken place so far including the visit of Chinese prime minister and meeting of Nawaz Sharif the prime minister in waiting with the President Asif Ali Zardari.

While spinners remained eager to replenish their stocks to meet their near future cotton requirements however, the decreasing stocks of cotton held by ginners and acute shortage of quality lint restricted the activity.

As a result, amid moderate buying the overnight gains in cotton prices were retained and the underlying sentiment remained firm and encouraging, brokers said.

The Karachi Cotton Association (KCA) spot rates remained firm and trading on ready counter was fairly moderate. The following transactions were reported to have changed hands on Thursday: 200 bales, Hyderabad, at Rs6,200, 200 bales, Khipro, at Rs6,200, 200 bales, Hingorja, at Rs6,200, 500 bales, Mianwali, at Rs6,300, 200 bales, Duniapur, at Rs6,500 and 200 bales, Khanpur (conditional), at Rs6,750.