KARACHI, June 25: The weighted average carryover rates on the Karachi Stock Exchange rose further for the second consecutive week as the money market remained tight owing to year-end considerations.
Analysts at a leading research and brokerage house said the COT rates ended the week at 14.1 per cent from the previous week’s 12.7 per cent, the mid-week peak level being 14.9 per cent as discounting of about Rs12 billion was also done during the last two sessions of the week.
COT rates over the week, however, remained depressed owing to its scheduled phase out. The investor interest for more funds also remained on the lower side after the rolling of positions from the June contract to the ruling July settlement.
Investment on the COT business suffered a decline of 13 per cent at Rs14.9bn from the previous week’s Rs17.1 billion because of a considerable decline in the weekly volume and modest fall in share values.
Because of year-end factors, COT volume fell to 147m shares from the last week’s 173m shares, although it is much higher than the scheduled phase out plan (8.25 per cent) requires on weekly basis.
