KARACHI, Jan 5: The CFS rates on the Karachi Stock Exchange last week progressively fell from the 11-month high of 17.6 per cent to 11.2 per cent as demand for fresh credit lines fluctuated in line with the law and order situation and other external negative factors.

Analyst Khurram Shehzad, at a leading research house InvestCap, attributed the increase in rates partly to tight money market and partly to risks involved in share business owing to fears of violence.

As a result, CFS investment, which were close to its cap also fell below the Rs50 billion mark at Rs49 billion, he said, adding more than 45 per cent of the total (Rs22.3 billion) went to the credit of National Bank, Pakistan Petroleum, Pakistan Oilfields, OGDC and Arif Habib Securities.

Total interest on the forward counter rose to Rs8.28 billion from the previous Rs5.60 billion, but on the other hand future spreads showed a fractional decline of eight basis points at 7.05 per cent.