The rates at the CFS counter rose 30 basis points as some of the key companies recorded appreciable gains last week. The investment,however, remained stuck at Rs 25 billion, the limit allowed by the stock market regulator.
The CFS scenario remained monotonous where leverage through CFS stayed glued to the ceiling at Rs 25 billion all throughout the week. The only thing that swayed a little was the rate of CFS charged. The weighted average CFS rate went up slightly from 15.7 percent on previous Friday (September 23) to 16.0 percent last Friday (September 30). This was the lowest rate achieved during the week, as it went up as high as 17.9 percent on Thursday (September 29).
Leverage through CFS at LSE increased from Rs 2.14 billion to Rs 2.31 billion, showing an increase of 8 percent on weekend-to-weekend basis. CFS rate at LSE, however, came down from 27.1 percent on previous Friday (September 23) to 22.1 percent on last Friday (September 30).
Faisal Jiwani, research analyst at Investcapital Securities, said that last five trading sessions were the last week for September futures, paving the way for October futures to set in. Open interest in the outgoing September futures declined to Rs 5.4 billion on last Friday compared to Rs 9.5 billion on previous Friday.
Open interest in October futures, which started from Monday last week, accumulated to Rs 8.4 billion on Friday (September 30), making the open interest in futures total Rs 13.8 billion. This way, total increase in open interest in futures amounted to Rs 4.3 billion on weekend-to-weekend basis. However, Rs 5.4 billion in the September futures will not be carried forward.
The weighted average stock futures spread at KSE rose significantly on last Friday (September 30) as October futures took place of the outgoing September futures. The weighted average spread on futures was 23.51 percent on last Friday, which was higher during the week, starting as low as 16.7 percent on Monday (September 26).
Total leverage at the KSE went up by 12 percent from Rs 34.5 billion to Rs 38.8 billion on weekend-to-weekend basis, including the leverage in September futures.
Comments
Comments are closed.