Investment under Continuous Funding System CFS) on Karachi share market declined to Rs 11.89 billion at the end of the outgoing week as compared to Rs 12.9 billion recorded on the same day a week earlier. The average CFS rate also declined to 59.46 percent as compared to previous week''s 89.9 percent, mainly due to less demand for funds, analysts said.
"With CFS rate jumping to a 7-year high of 63 percent on October 9, 2008 and many investors unable to roll over their position, the regulator decided to roll over positions forcefully", analysts said, adding that "on October 14, National Clearing Company of Pakistan Limited (NCCPL) decided that investors having position as of October 9 will have their contract extended for another 22 business days".
This forced rollover reduced activity at the CFS counter. Hence, average daily volumes in CFS declined to 0.3 million shares only with CFS rate closing the week at 59.46 percent, they added.
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