KARACHI, Dec 24: Investment under Continuous Funding System (CFS) on the Karachi Stock Exchange last week stood at the revised ceiling of Rs24.5 billion as compared to previous Rs25 billion owing to relatively slow activity in the share business.
The notable feature was that new CFS mechanism was finally introduced lining up funding during the trading hours, which also has a negative impact on the borrowing by the needy investors, analysts said.
However, prior to downward revision of the CFS limit under the new system, it touched the highest level of Rs25 billion on last Monday, they said.
Bulk of the CFS investment was financed at 17.6 per cent and mostly fluctuated between 17 and 18 per cent, after touching the week’s lowest and highest levels at 17.3 and 17.9 per cent respectively, they added.
But on the other hand CFS rate on the Lahore Stock Exchange showed a decline of 380 basis points at 16.2 per cent. As a result, investment also came down to Rs2.26 billion from the previous Rs2.31 billion.
Analysts said the open interest in future stocks showed a fresh fall at Rs14.2 billion or 7.5 per cent from Rs15.3 billion well before the next week’s opening of the rollover positions for the matured December settlements to the January contracts.
Contrary to decline in open interest, spreads in the futures market posted a modest increase at 6.99pc as compared to 6.64 per cent a week earlier, they added.
