KARACHI, June 4: The weighted average carryover rates on the Karachi stock market last week showed a modest increase of 60 basis points at 11.4 per cent as compared to 10.8 per cent a week earlier amid orderly either-way movement. “A fairly liquid inter-bank money market allowed badla financers an opportunity to finance leveraged positions with a relative ease,” analysts at a leading brokerage research house said.

Incidentally, it was the last full week for the COT financing before the final phasing out plan to be executed from June 8, as was reflected by 8.25 per cent fall in the weekly turnover, they said.

“The total COT volume may suffer a decline of 8.25 per cent and could cause pressure on prices ,as the shift may be a major event,” they said, adding that ”the switchover to margin financing from the COT may not be that easy for the general investors.”

The carryover rates on the Lahore Stock Exchange also posted a modest rise at 12.3 per cent as compared to previous week’s 10.2 per cent. Owing to on-balance increase in prices over the week, investment on the COT market rose by Rs1.1bn at Rs21.5bn as compared to Rs20.4bn a week earlier. But on the other hand, the volume fell to 229m shares from the previous 234m shares.