KARACHI, Sept 24: Share financing rates under the Continuous Funding System (CFS) on the Karachi Stock Exchange last week showed minor either-way fluctuations but finished modestly lower by 80 basis points at 15.7 per cent.
The financing amount remained capped at Rs25 billion, indicating that the borrowers are holding on to huge amounts on the perception that the future supplies may not be that easy, analysts at a leading brokerage and research house said.
“For the last couple of weeks, the CFS sessions last for only few minutes or seconds and end as the limit of Rs25 billion is touched,” they said.
They said the weighted average spread of stock futures on the other hand fell sharply to 5.65 per cent, showing a decline of 598 basis points as compared to a week earlier.
As a result, open interest in stock futures fell by Rs0.5 billion at Rs9.5bn as many investors did not square their positions before the last trading week in September settlements, they said.
