June 18, 2006	Sunday	Jumadi-ul-Awwal 21, 1427

KARACHI, June 17: Financing under the CFS on the Karachi Stock Exchange suffered fresh sharp decline, as investors’ demand for funds remained at low ebb owing to the prevailing volatility on the market.

According to a leading analyst, the figure fell to Rs10.9 billion from the previous Rs15.2 billion and ceiling limit of Rs24.2 billion. Retailers remained conspicuous by their absence as no one among them was inclined to re-enter the market fraught with high risks, they added.

In the absence of strong demand for funds, the CFS rates also largely remained unchanged from the previous level of around 12.8 per cent.

Identical trading conditions also prevailed on the Lahore Stock Exchange. Owing to ban on short-selling on the forward counter, activity on the futures market remained dull, which was well reflected in volume figures, which fell to 55m shares from the previous 84m shares, they said.

Open interest in futures also fell to Rs8.97 billion from the previous Rs9.42 billion but on the other hand future spreads increased to 13 per cent from last week’s six per cent.