July 23, 2006	Sunday	Jumadi-ul-Sani 26, 1427

KARACHI, July 22: CFS rates on the Karachi Stock Exchange last week showed a modest increase of 160 basis points at 14.4 per cent in sympathy with a rise in the inter-bank money market.

The central bank’s recent decision to increase bank cash reserve requirements by two per cent, analysts said, contributed to the increase in the Continuous Funding System (CFS).

Financing under the CFS also showed an impressive rise close to the ceiling at Rs24 billion, as demand for funds rose owing to recovery in the share values.

The open interest in future contracts was, however, remained around the previous level of Rs7.4 billion because of a ban on short selling in the ruling July settlements, analysts said.

However, the activity on this counter is expected to show a sharp rise during next week, as non-residents have been allowed by the central bank to trade in futures market, they added.