KARACHI, July 24: The weighted average carryover rates last week posted a modest rise of 120 basis points at 13 per cent as compared to 11.8pc a week earlier partly because of liquidity crunch and partly to tax imposed on the income of carryover business.

"The IPO of Pakistan Petroleum claimed to have drained out massive amounts from the share market as the initial reports of heavy oversubscription indicate", says an analyst at a leading equity research house "a figure of Rs20bn is estimated on the lower side".

He said withholding tax at the rate of 10 per cent on the badla financing was also taking its toll as a section of financiers was conspicuous by its absence for obvious reasons.

"The carryover rates are expected to remain on the higher side until the heavy amounts freed from the PPL IPO are reploughed in the share business", he adds.

Carryover rates on the Lahore Stock Exchange soared to 20.2 per cent as compared to the previous week's 15 per cent for an identical reasons.

Investment and volume figures did not show any significant change and stood at Rs27.4bn and 46m shares respectively because of modest either-way changes in the KSE 100-share index.