KARACHI, Nov 27: Investment on the carryover market of the Karachi Stock Exchange last week swelled to a record level of Rs28.8 billion from the previous Rs27.3 billion, showing an increase of Rs1.5 billion or 5.5 per cent.

Analysts at a leading research house attributed the increase partly to higher share values and rise in leverage positions of leading punters and investors.

The record rise in investment is expected to remain a source of major worry for the market and a free float from it in any session could halt the market's upward drive at least for the near-term," they fear. "The KSE index at seven-month and badla rate at five-week highs could keep the market terribly volatile during the coming sessions."

The weighted average badla rate on the KSE rose by 110 basis points to 12.8 per cent from 11.7 per cent at the week earlier because of higher volume of 471m shares and increased share values, they said. Withdrawal of funds by some of the leading financial institutions ahead of December closing was another contributory factor.

Badla investment and rates on the Lahore Stock Exchange also rose by 2.7 per cent at Rs3.1 billion and 15.8 per cent, respectively.

Average badla rates of leading shares, notably PSO, OGDCL, Pakistan Oilfields, PTCL, National Bank, Hub-Power, D.G. Khan Cement, Nishat Mills, Engro Chemical and Sui Northern Gas were quoted at 10.2, 11.7, 10.9, 14.1, 10.2, 12.6, 14.2, 12.4, 13.2 and 10.9 per cent, respectively.