KARACHI, Oct 18: The CFS MK-2 rates on the Karachi Stock Exchange last week suffered a sharp fall and were quoted around 53.47 per cent from the previous about 90 per cent owing to plunging demand for fresh credit lines.

Analyst Muniba Saeed attributed the fresh fall in CFS rates to the absence of exit opportunities on the stock market amid falling investor interest and the ‘floor” under the KSE 100-share index.

CFS investment also fell by 6.65 per cent at Rs12.04 billion as leveraged investors were not inclined to make fresh commitments apparently awaiting the removal of the bottom cap on Oct 27, she added.

The top five companies, which accounted for bulk of the CFS investment during the week under review, were led by JS & Co, OGDC, National Bank, Arif Habib Securities, and Pakistan Oilfields, which together took 39 per cent of the total, she said.

She added that owing to floor mechanism, investors were reluctant to invest in the futures market and the activity may pick up after it was lifted. Future spread and open interest remained low.