KARACHI, July 1: The weighted average CFS rate on the Karachi Stock Exchange last week suffered a fractional decline of 20 basis points as the inter-bank money market remained liquid.

“There was no pressure on the supply of funds throughout the last week despite rising stock market after mid-week and the fall in rates reflects oversupply of liquid cash,” a leading analyst at a research house said.

Financing under the CFS on the hand showed an increase of Rs1.9 billion at Rs18.9 billion as compared to 17 billion a week earlier owing to increase in demand for funds at the fag-end of the trading week.

The CFS rate during the fiscal ended on June 30, 2006 touched the lowest and the highest at 10.5 and 27.4 per cent, respectively, the average being at 16.2 per cent, he added.

The open interest in stock futures for the rung off June settlements rose to Rs5.7 billion and outstanding positions will be settled on July 5.

The spread in June futures did not show any significant change and an average spreads in July contracts is expected to be around 10.95 per cent, they added.