March 16, 2003	Sunday	Muharram 12, 1424

KARACHI, March 15: Investment on the carryover market showed a modest increase during the holiday-shortened week but it did not match the 3.7 per cent increase in the KSE 100-share index or the rising volumes.

The interesting feature was that carryover rates remained below the six per cent mark for the second consecutive week, the lowest at 5.5 per cent being on the Lahore Stock Exchange.

Both the traded volume and share prices showed an increase but the weighted average rates on the local bourses stayed flat owing to surplus liquidity, says a leading stock analyst.

“Though the carryover rates have been capped by the KSE to check undue speculation, but currently they may not have any relevance to the ground realities and the phenomenon of excess liquidity,” he adds.

Indications are that the carryover rates will stay on the lower side as surplus funds will continue to find their way in the carryover market in the weeks to come also despite central bank’s policy to suck surplus liquidity from the inter-bank market, he said.

The total investment in the carryover market showed a modest rise at Rs7.1bn as compared to Rs6.9bn last week on both the leading bourses, but bulk of it contributed by the KSE to Rs6.3bn from the previous week’s Rs6.1bn.