In line with the global sentiment, domestic cotton prices also declined on Thursday. Thus the local market was bearish and yarn prices were also not doing well. Overall weakness appeared to encompass the cotton economy at large. Thus seed cotton (Kapas/Phutti) prices were said to have a conceded Rs 50 to Rs 100 per 40 Kgs for the higher quality. Lint prices were declined by Rs 100 to Rs 150 per maund (37.32 Kgs) in both Sindh and Punjab.
Thus seed cotton prices in Sindh are said to have ranged lower from Rs 1,600 to Rs 2,300 per 40 Kgs on Thursday, while in the Punjab they reportedly extended from Rs 1,700 to Rs 2,500 per 40 Kilogrammes. Lint prices also adopted lower levels and in Sindh were said to have ranged from Rs 3,800 to Rs 4,800 per maund (37.32 Kgs), while in the Punjab they reportedly ranged from Rs 4,400 to Rs 4,900 per maund in an insipid market.
Domestic good quality lint is priced at about Rs 4,800 per maund (37.32 kgs) (or, USC 58.00/lb) ex-gin basis. However, the inferior qualities are reported to being offered as low as Rs 3,800 per maund (37.32 kgs) (or, USC 46.00/lb) ex-gin basis. In our discussions with the leading spinning groups of Pakistan, most of them did not show today a serious interest for buying of foreign growths as domestic prices are more attractive and also because they are generally well covered for nearby requirements. The spinners in general are in fact, disturbed as most of their cotton purchases, whether Pakistani or imported, were done at higher prices and the market has since declined over the past several months. Additionally, they also complained of unviable yarn prices which are difficult to sell. Several parties in China are reported to be also creating difficulties in opening of L/Cs for the yarns which they purchased earlier.
In ready cotton sales reported on Thursday evening, 500 bales of cotton from Chistian in Punjab were sold at Rs 4,575 per maund (37.32 Kgs), 400 bales from Layya sold at Rs 4,700 per maund, 400 bales from Rahimyar Khan sold at Rs 4,900 per maund while 600 bales from Mianwali sold at Rs 4,975 per maund in a generally weak market. In Sindh, 200 bales each from Sanghar and Shahdadpur sold at Rs 4,000 per maund each.
Death occurred of Begum Kulsum Saifullah Khan, a former federal minister, last Monday (26 January 2015) who belonged to a very distinguished family of Khyber Pakhtunkhwa. Her family has wide and leading interests in the politics of Pakistan, besides having large interests in many business sectors of Pakistan. The late Begum Kulsum Saifullah Khan (Hilal-e-Imtiaz) was a veteran politician and parliamentarian of Pakistan. She was the mother of Saleem Saifullah Khan, a former federal minister, Javaid Saifullah Khan, both of whom are former Chairmen of All Pakistan Textile Mills Association (APTMA), Anwar Saifullah Khan and Humayun Saifullah Khan. She was the grandmother of Senator Osman Saifullah Khan and Barrister Assad Saifullah Khan (Chairman APTMA Khyber Pakhtunkhwa region). May Allah Allmighty bless the departed soul and grant courage and fortitude to the bereaved family to bear this loss.
On the global economic and financial front, uncertainty and continuing gloom seem to be the order of the day. Mostly weak and negative data emerging from several countries and regions continues to plague the global economic condition. The falling commodity markets are further undermining the economic condition around the world. There are few observers around the globe who appear optimistic today. Some feel that the global technological change and progress is leading the world into uncharted waters and the global socio-economic condition is morphing into unprojectable territory.
To begin with, the global economic, fiscal and financial condition is not healing truly and several countries, regions and economies are barely making ends meet. Since the beginning of the 2015, economic uncertainties and volatilities have increased phenomenally with fewer prescriptions in hand which can deliver a comprehensive charter to handle the new economic and financial problems being faced by the world. Deflation in the Euro zone and its lacklustre growth figures have undermined confidence sharply as it has still not recovered from its 2009-2012 crisis and it continues to suffer from record unemployment.
Bank of England governor Mark Carney is said to have warned that the current fiscal and financial linkages are weak and a single currency sharing could only work if decisions on matters of taxes and spending are shared. Retail sales fell by 0.9% in the US in December 2014, which is the biggest monthly decline since January 2014. The US added 252,000 jobs in December 2014.
China is going through a period of slow growth since the last few years and it appears difficult that it may achieve an upward trajectory in the foreseeable future. Investment in the housing sector has been tepid and increase in debts is creating a fear that defaults at the local levels and lower tiers of lending may hurt the economy seriously. Furthermore, besides rising debts, decreasing demand for its manufactures both at home and abroad may slow down China's economy seriously.
There are clear indications that earnings on the equity markets will mostly be disappointing during 2015 due to the strength of the American dollar and the slowing down of the global economy in the Euro zone, Russia, China and the complex Federal Reserve decisions. Volatility in the US markets in 2015 has not disappeared.