Investment under Continuous Funding System (CFS) at Karachi share market declined by 10.2 percent on week-on-week basis to stand at Rs 49.0 billion on the end of the outgoing week ended January 04, 2008 as compared Rs 54.51 billion recorded on the same day a week earlier.
The CFS rate kept coming down each day of the week from an 11-month high of 17.6 percent on December 31, settling at 11.2 percent. The CFS rate was recorded at 14.0 percent on the last traded day of previous week.
"The high increase in rates was due to the tight money-market conditions as well as increased risk in the stocks'''' investment", Khurram Schehzad, a senior analyst at Invest Capital & Securities said.
More than 45 percent (Rs 22.3 billion) of the CFS investment was contributed by NBP, PPL, POL, OGDC and AHSL.
Futures volume dropped by 31 percent (averaging at 42 million shares against 61 million shares last week) indicating avoidance of longer tenure positions by investors.
Total open interest at the futures counter settled at Rs 8.28 billion against Rs 5.60 billion last week. Spreads also declined slightly by 8bps, settling at 7.05 percent on Friday. Combined PPL, NBP, POL, OGDC and MCB contributed Rs 5.0 billion (60.6 percent) to the outstanding open interest.
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