KARACHI, Nov 13: Owing to bullish trend on the stock market, investment on the carryover market showed a modest rise as demand for funds kept increasing throughout the last week.
But on the other hand carryover rates suffered a fresh modest fall of 70 basis points at 8.6 per cent despite higher investment and expensive money market. Carryover rates on the Lahore Stock Exchange on the other hand rose by 130 basis points at 10.9 per cent.
According to figures compiled by a prominent equity research house, the investment figure, which has been on the decline for the last couple of weeks, rose to Rs25.4 billion from the previous week's Rs25.00 billion.
"But as the volume on the carryover market remained static at the last level, the increase in investment was caused by rising share values", they said. Carryover investment on the Lahore Stock Exchange also rose by 12 per cent or Rs0.3bn, to Rs2.9bn, combined investment on both the bourses being Rs28.4bn as compared to Rs27.6bn a week earlier, the research house said.
Analysts said if the market continues its upward drive during the post-eid holiday trading sessions, carryover rates are also expected to rise because of a tight inter-bank money market. Carryover rates for the major stocks, notably OGDC, PSO and Pakistan Oilfields on Friday were at 8.00, 7.1 and 8.2 per cent respectively.
