KARACHI, Dec 17: After having fluctuated either-way, CFS rates on the Karachi Stock Exchange rose by 201 basis points at 17.5 per cent from the previous 15.4 per cent during the week ending Dec 16, reflecting a sharp increase in prices of some of the leading shares.
The mid-week low was touched at 14.8 per cent, but a sharp rise in prices of some of the leading shares, notably MCB pushed them to the current higher level, analysts said.
The other contributory aiding factor fuelling the rise was a persistent decline in stock future spreads as investors opted for the ready counters after having liquidated long positions in some of the leading shares for quick capital gains, they said.
Investment under the CFS, however, remained capped at the ceiling rate of Rs25 billion as investors filled in the money gaps by selling on the overvalued counters to make fresh buying.
“The futures market witnessed a dip in open market interest as leveraged investors squared their positions because of low daily share volumes during the week,” they added.
The CFS rates on the Lahore Stock Exchange posted a modest rise of 30 basis points and investment on the previous levels amid falling buying interest.
Meanwhile, the KSE high-ups have announced that from Dec 19, the CFS operations will be carried out along with ready market during the official trading hours and finances will be available during this time.
