KARACHI, Nov 12: The weighted average rate under the Continuous Funding System (CFS) showed a marginal increase at 16.8 per cent as compared to the previous week’s 16.6 per cent, as the money market remained tight for the second week in a row.

Analysts said leveraging through stock futures as well as CFS rates was on the higher side but spread showed a sharp decline. Investment under the CFS, however, remained pegged at the upper limit of Rs25 billion in response to a substantial increase in equity values, they added.

The average CFS rate on the Lahore Stock Exchange remained on the higher side and was last quoted at 21.3 per cent and so did investment at Rs2.3 billion, being the upper limit, they added.

Open interest in stock futures rose to Rs10.7 billion as against Rs9.4 billion a week earlier owing to a persistent increase in share values on the KSE, dealers said.

But on the other hand, spread in November stock futures suffered a sharp decline at 11.2 per cent from the previous 18.7 per cent, they added.