November 05, 2006	Sunday	Shawwal 12, 1427

KARACHI, Nov 4: The CFS financing on the Karachi Stock Exchange is expected to be on the higher side next week after the increase in limit to Rs55.00 billion just in one go from the previous Rs25 billion.

Analyst Ali Hussain said a number of changes made in the CFS mode of financing by the SECP to be effective from Dec 4 could adequately meet the increasing needs of financing by the prospective investors.

The cap in CFS rates is set at 19.78 per cent based on one-month’s Kibor plus 10 per cent as compared to previous 18 per cent will also provide greater manoeuvring leverage to investors, he added.

The activity on the future counter was also on the higher side as combined open interest in October and November contracts rose to Rs15.8 billion from Rs9.7 billion the previous week, he said.

The spreads between the ready and future settlements also showed sharp increase at 12.90 per cent from 9.00 per cent a week earlier followed by market’s sharp rebound on Friday.