June 11, 2006	Sunday	Jumadi-ul-Awwal 14, 1427

KARACHI, June 10: The financing under CFS and rates on the Karachi stock Exchange touched new lows owing to terribly volatile price movements in the share values throughout the last week, analysts said.

Both financing and rates remained below their upper limits of Rs24.5bn and 18pc, falling to Rs15.2bn and 12.7pc respectively, they added.

On the Lahore Stock Exchange the financing under CFS fell to Rs1.39bn from the previous Rs1.63bn but the rates rose to 15.9pc from 14pc a week earlier.

Trading on the futures market was also affected by the turmoil on the stock market as was reflected in sharp fall in futures open interest. What was more alarming was that future spread fell into single digit, they said.

The total futures interest suffered sharp decline at Rs9.42 billion from the previous average figure of Rs13-15bn. Future spreads also fell to 6pc from the previous 14pc.

The sharp fall in future spreads also indicates heavy short-selling on the forward counter in some of the most liquid scrips apparently to square positions to avoid any possible default on the part of some leading brokers, the added.