KARACHI, Nov 20: After ruling within a single digit for the last couple of weeks, carryover rates on the Karachi Stock Exchange rose by 310 basis points to 11.7 per cent from 8.6 per cent a week earlier.

"Massive buying in some of the pivotals, notably PTCL and PSO amid reports of their sell-off was the chief reason behind the increasing financing needs", analysts at a leading research house said.

The other supporting positive factor was the reported liquidity crunch in the inter-bank money market after discounting of Rs5.8 billion", they added.

Strong rumours on the privatization front, notably in regard to PSO and optimism generated by the prime minister's Friday speech forced investors to take fresh positions on selected counters, causing pressure on the money supply, some others said.

The weighted badla rate on the Lahore Stock Exchange also rose to 14.2 per cent from the previous 10.1 per cent and indications are that the badla rates may remain on the higher side as demand for funds is expected to rise further, brokers said.

As the demand for fresh credit lines remained on the higher side, investment on the carryover market swelled to Rs27.3bn from the last week's Rs25.4bn, showing an increase of Rs1.9bn over the week.

Meanwhile, phasing out of the badla financing continues as another stock, Telecard was taken off the COT list, raising the number of shares to four since the plan was initiated in last October.