KARACHI, Dec 11: Investment on the carryover market last week hit a record high of Rs.30.7 billion billed as the highest-ever figure so far recorded in the trading history of the Karachi Stock Exchange.
Analysts at a leading brokerage and research house said the rising figure closely followed the steep increase in the share values for the first four sessions of the week, barring the weekend correction. Higher volume was another contributory aiding factor.
However, a strong technical correction in equities at the fag-end of the session, which clipped about Rs10bn from the market capital, pushed it lower to Rs29.7bn, which is also a record figure. The net rise during the week was of the order of Rs1.5bn or 5.4 per cent, they added.
But incidentally carryover rates did not follow it, which remained within the single digit at 9.5 per cent as compared to the previous week's 9.2 per cent. Analysts said the money supply remained easy owing to a liquid inter-bank market, which in turn did not allow any major change in the rates.
The average weighted badla rate on the Lahore Stock Exchange, however, rose further by 140 basis point and stood firm at around 13.6 per cent, they said.
The volume on the carryover market showed a robust increase of 24.2m shares at 479.3m shares as compared to previous week's total, which could well mean a fresh float from it to the share business after trading resumes next week, leading to fresh price erosions.
