KARACHI, Feb 26: The cotton market finished the weekend session on a firm note as ginners held on to their positions amid rumours that some of the leading textiles groups have opted for forward imports.

But the ginners discounted the rumours and said that apart from 2.5m bales of fine lots lying in TCP godowns, the ginners too have around half a million bales and there should be no alarm in the spinning sector about the future supplies.

"The talk of imports apparently aims at outwitting the ginners who are raising their asking prices each session," says a leading ginner. "No one among us is scared about the rumours."

That is perhaps why, the ginners have raised their asking prices from the previous Rs2,400 to Rs2,450.00 and were in mood to sell below this level, which is well-reflected in the low volume.

"The price-war between the spinners and ginners is at its peak and who would be the winner is pretty difficult to predict at this stage," analysts said. "The arrival figures of phutti for the fortnight ending Feb 28 are expected to shape the future course of the market irrespective of imports or not imports."

News from the world markets are also bullish amid reports that China will have to import 14.5m bales of lint from various sources during the next season to meet the rising demand of its textile sector which consumes 41m bales plus each season, they said.

The world supply and demand figures indicate that prices could rise further both on the local and international markets during the coming months on speculative buying by leading US traders.

Most of the local ginners holding modest unsold stocks may not be fully aware of the developing situation on the world markets, but leading spinners have a fair idea of post-WTO textile regime and are probing the world markets.

Some rumours also suggest that leading among them have made forward deals for about 0.7m bales from different sources between 42 and 46 cents per lb for forward shipments starting from April to June 30, market sources said.

Official spot rates consolidated the overnight gains and were quoted unchanged in the absence of active activity in the ready section.

About 3,000 bales of fine lots both from upper Sindh and southern Punjab cotton belts were sold at around Rs2,400, but spinners were not inclined to bid at Rs2,450.