KARACHI, June 18: After having fallen into single-digit, carryover rates on the Karachi Stock Exchange during the previous week rose to 12.7 per cent from the previous 9.6 per cent, showing an increase of 310 basis points.
The increase is attributed to tight money market where a massive discounting of Rs10.7bn was reported, analysts said, adding that the COT rates maintained their upward move since Wednesday till Friday.
But on the other hand, both COT investment and volume recorded a persistent fall. The investment declined to Rs17.1bn from Rs20.5 billion and the volume fell to 173m shares from the previous 207m shares.
“As the badla market is nearing its end and to be replaced by margin financing through banks, leverage is edging into the future market,” analysts said.
The weighted average badla rate at the Lahore Stock Exchange also increased to 11.4 per cent from 10.1 per cent and so did the investment at Rs1.3bn from Rs1.4bn a week earlier.
