IMPROVED MARKET CONDITIONS

IMPROVED MARKET CONDITIONS
Q Reproduce the following Market Report in non-technical language:
“Karachi August 02,200: improved conditions were visible in the Cotton Market yesterday and
admits moderate scale trading future finished the day 50 paisa for the ruling September contract and 30
paisa dearer for the distant December delivery. The other factors helping the recovery of the market
were demand in ready sector and expected increase in trading with Islamic Jamhuria Bangla Desh.
Spot rates were also hardened to the extant of 65 paisa each of all Desi varities”.
ANSWER:
This extract is taken from Karachi Cotton Exchange for August 01, 2001. The reporter has discussed
the factors that led to the improvement in the market conditions on the day reported for the market has
taken a turn from the downward sewing to an upward spiral. The cause appears to be the presence of
more buyers than the sellers. The prices, as a result, are rising and have recorded the day with 50 paisa
higher for September delivery and 30 paisa for December delivery.
The other reasons appearing to contribute to the optimistic feeling was expected increase in trading
with Islamic Jamhuria Bangla Desh. Rates for ready delivery showed the tendency of price rise to the
extent of 65 paisa each for all desi varities.
DOWNWARD TENDENCY IN PRICES
Q. Draw up, in proper form a market day report in technical words relating to Karachi
Stock Exchange using imaginary facts and figures. You are to report a downward tendency
in prices and explain the main causes responsible for it.
ANSWER:
SPECIMEN
KARACHI STOCK EXCHANGE
Karachi, May 30th 2002
Generally, a sagging tendency was noted in the Karachi Stock Exchange on Tuesday with interest
centered round mostly blue chips. Gains and losses were not evenly matched.
In the forward section, Adamjee Cotton which started steady at Rs. 17.75 against the previous close at
Rs. 17.60 declined to Rs. 17.50 to close round Rs. 17.55.
I.C.P after opening 50 paisa higher at Rs. 103.50 came down to Rs. 103.25 this however, could hardly
be maintained.