KARACHI, Aug 6: The weighted average carryover rates on the Karachi Stock Exchange last week soared to 19.9 per cent from the previous 11.4 per cent, showing a net rise of 6.9 per cent as badla financers kept a strong hold on the market, analysts said.
“There were situations in between during the week that finances could not be lined up for a couple of shares as the motto of “first-come-first-served” was hallmark of the COT market”, they said.
As the investment on the badla market remained capped at Rs12, the actual transactions amounted to only Rs1 billion. Total leverage positions, however, suffered a fall because of settlement of July futures after the badla rates showed signs of a lenders’ market, they added.
But on the other hand badla rates on the Lahore Stock Exchange showed a modest rise to 90 basis points at 11.8pc from 10.9pc a week earlier, while investment stood unchanged at Rs0.90 billion.
