05 December 2004	Sunday	22 Shawwal 1425

KARACHI, Dec 4: Carryover rates on the Karachi Stock Exchange last week fell from the recent highs into a single-digit - from 12.8 per cent to 9.2 per cent, showing a decline of 360 basis points.

Analysts said apart from a liquid inter-bank money market, the other destabilizing factor was massive investment by some of the investors that inflated badla rates being attractive bait.

But on the other hand there was no major change in the investment figure, which though suffered a modest fall of Rs0.6 billion at Rs28.2 billion as compared to previous Rs28.8 billion, it is still on the higher side. Falling volume was one of the reasons behind the modest fall, they said.

The weighted average badla rate on the Lahore Stock Exchange also fell by the same amount from 12.2pc and so did investment at Rs3 billion from the previous week's Rs3.1 billion.

According to figures compiled by a leading research and brokerage house, volume also fell to 455m shares from the previous week's 471m shares, leading to a decline in total investment.