KARACHI, July 26: The investment under continuous funding system (CFS) including MK-2 on the Karachi Stock Exchange last week posted a fresh modest fall of 69 basis points at Rs27 billion despite a strong recovery staged by the share market.

Analyst Ayub Ansari said the launching of Rs20 billion equity market fund may have caused a decline in investor lending options owing to general improvement in the liquidity position.

Investors also played safe and did not go beyond their predetermined buying limits awaiting apparently “whether or not the current rally is carried over to the next week,” he added.

But on the other hand CFS and CFS MK-2 rates showed a divergent trend. While the former rose by 20 basis points to 15.25 per cent, the latter fell by 74 basis points at 14.67 per cent, reflecting the investor preference to both modes of credit lines, he added.

The top five companies, which accounted for 40 per cent of the total investment under MK-2, include Arif Habib Securities, National Bank, JS & Co, Pakistan Oilfields and Engro Chemical Pakistan.

He said the open interest both in July and August contracts totalled Rs9.8 billion. August future spreads were settled around 12.91 per cent, while that of July at 37 per cent owing partly to restoration of the short-selling and rollover facility availed by the leveraged investors.