KARACHI, May 17: Badla rates on the carryover market last week showed a modest fall at six per cent as compared to 6.8 per cent a week earlier because of easy money supply.

Some analysts, however, predict the weighted average rate could rise to seven per cent aided by bullish conditions prevailing on the stock market after the KSE 100-share index crossed the barrier of 3,000 points and sharp increase in the share values of major players of the carryover market.

Share volume in the carryover market fell from the previous 300 million shares to 297 million shares may be one of the reasons having negative impact on the badla investment, they added.

“Rising stock prices could well be a judicious combination of some genuine buying and taking away of leveraged positions outside the confines of carryover market by some others,” says a leading analyst.

Carryover rates in the leading scrips, notably the PTCL, the Hub-Power and the PSO remained around or slightly below five per cent. At one stage the Hub-Power rate fell to 4 per cent.

The notable feature of the week was that investment and volume in the Sui Northern Gas rose by 47.4 and 38.7 per cent, respectively, at Rs.591 million and 19 million shares after it swung into brisk activity, while both the PSO and the Hub-Power finished the week on the lower side. The PTCL on the other hand performed well.

The total investment on the KSE and the LSE also suffered modest fall at Rs10 billion from Rs10.2 billion over the week, market sources said.