KARACHI, Nov 26: The weighted average rate under the CFS on the Karachi Stock Exchange during the last week showed a fresh modest rise of 60 basis points at 16.2pc as compared to the previous week’s 15.6 per cent owing to tight money market.
The other contributory factor fuelling the increase was bullish trend on the stock market, which requires more funding for the higher leveraged positions, analysts at a leading brokerage and research said, adding “it was not, however, a windfall profit for the financers but they were fully rewarded.”
Investment under the CFS on the other hand remained capped at the upper limit of Rs25 billion for the 5th week in a row as investors played safe on the future market, they said.
Open interest in December stock futures rose to Rs10.3 billion as compared to Rs5.3 billion, indicating an increase in the ruling settlement at 0.217m contracts. In percentage terms it rose to 17 per cent from the previous 12.5 per cent.
Average daily volume in stock futures over the week showed an increase of 29 per cent at 109 million shares as CFS rates and future spread remained on the higher side, another analyst said.
