KARACHI, Sept 4: Weighted average carryover rate on the Karachi Stock Exchange showed a fresh modest decline of 60 basis points at 8 per cent as compared to 8.6 per cent a week earlier as the market remained terribly liquid
, analysts at a leading brokerage house said.
Moreover, the recent increase in money rates did not have any negative impact on the carryover market as financers outnumbered the borrower despite the fact that the rates are contained within a single digit for the last several weeks, they added.
Unlike the previous several weeks, investment on the carryover market also suffered a fall of Rs1.4 billion at Rs27 billion because steep decline in the daily traded volumes, which fell to 493m shares from the previous week's 512m shares.
"What worries investors was higher investment on the carryover market, which could well mean free float could upset the current rates any time if some of them chose to liquidate their long positions," analysts fear.
But carryover rates on the Lahore Stock Exchange rose by 180 basis points at 11.8pct as against last week's 10pc. Investment on the carryover market, however, fell by Rs500m at Rs3.2 billion.
