KARACHI, May 24: The CFS rates on the Karachi Stock Exchange last week soared to current year’s high of 17.84 per cent, up by 384 basis points owing to prevailing turmoil on the money and stock markets and the weakness of the rupee.

Ayub Ansari, analyst at Invest Capital, said pressure on the money supply, increase in interest rates and higher risk factors concerning the leverage investment were some of the reasons behind the massive surge in CFS rates resultantly the demand for fresh funds also fell sharply by 8.7 per cent, below the Rs50 billion-level, at Rs48.6 billion.

The top five borrowers were led by Pakistan Oilfields, and National Bank followed by Arif Habib Securities, Pakistan Petroleum, and Engro Chemical, he added.

The open interest on the future counter in the ruling May settlements, however, showed a fall of 6.2 per cent for obvious reasons and stood at Rs22.9 billion.

But on the other hand future spread posted a sharp increase of 656 basis points at 16.03 per cent.