May 21, 2006	Sunday	Rabi-us-Sani 22, 1427

KARACHI, May 20: The CFS rates on the Karachi Stock Exchange last week fell to 13.6 per cent, showing a decline of 350 basis points as compared to previous week’s 17.1 per cent.

Analysts at a leading brokerage and research house attributed the decline to falling demand for funds owing to highly volatile market guided by conflicting rumours.

CFS financing also dipped to Rs23.3 billion over the week from Rs24.5 billion after having touched at one stage touched the low of Rs22.1 billion claimed to be lowest since last August.

The future market also witnessed a progressive fall in spreads, average being 4.7 per cent, analysts said, which reflects short positions held by some of the leading investors.

The open interest figure also dipped to Rs14.7bn as compared to Rs17bn a week earlier as investors squared position as the rollover week is around, they added.