KARACHI, July 30: The weighted average badla rates on the Karachi Stock Exchange during the last week fell to 11.4 per cent from 14.4 per cent the previous week because of expectations of some positive development on the badla issue in a high-level meeting held on Friday. The meeting discussed the findings of the Tarin committee on the badla issue but was silent on its extension or discontinuation, the COT rates declined from the recent highs in the absence of falling demand for funds, analysts said.

On the other hand open interest of futures market rose to Rs11.2 billion from the previous Rs10.1 billion as around Rs7.3 billion rolled over to the newcomer August settlement from the rung-off July contracts, the balance of Rs3.9 billion to be settled on Aug 3. Analysts said tight inter-bank money market also contributed to higher future spreads being at 14.1 per cent or Rs11.2 billion. Leveraged positions also rose as badla was capped at Rs12 billion. Carryover rates on the Lahore Stock Exchange on the other hand showed a modest rise of 100 basis points at 10.9 per cent.