LAHORE, Jan 15: The badla rate in Lahore went up to 45 per cent on Wednesday in just one month from 15 per cent on December 15 as the badla market expanded to Rs2 billion, officials of the Lahore Stock Exchange told Dawn.

The officials, who asked not to be named, said: “The exorbitant increase in the badla rate and the expansion of the badla finance in such a short time indicated the active presence of speculators in the market.” They termed the stock market as “overheated”, and sounded a warning to small investors to remain on their guard.

The badla rate in Lahore rose by seven per cent on Wednesday to 45 per cent from 38 per cent on Tuesday.

The LSE-25 index grew by 18 per cent in December and nine per cent during the first 15 days of January. “Though it is true that this big growth in index can’t be ascribed merely to speculation.

The upward trend has solid basis. But the small investors need to be vigilant and take cautious decision in their own interest, and let the market consolidate,” the officials said.

In Karachi, the badla rate is stated to be around 25 per cent.