January 22, 2006	Sunday	Zilhaj 21, 1426

KARACHI, Jan 21: The weighted average financing rate under CFS on the Karachi Stock Exchange last week showed a fractional fall owing to lower demand for the funds.

Analysts at a leading research house said the investment on the other hand was sustained on the upper limit of Rs24.5bn despite a modest decline in the trading volume at 187m as compared to 195m shares a week earlier.

“The fall in volume was largely attributed as leverage positions were shifted to other overvalued stocks from the PTCL,” they added.

However, the market did not witness any major change in the leverage positions but open interest showed a modest increase, while future spreads fell from the previous levels, they added.

“The next trading week will be the roll-over week as January futures will be rung off the board and trading will be started in the February contracts,” they said but predicted that the switchover could further pressurize already low spreads in the maturing January settlements.”

The CFS rates on the Lahore Stock Exchange, however, posted an increase of 400 basis points at 20.2 per cent from the previous 17 per cent on the financing of Rs2.3bn.