The average badla rates in investment and trading stocks hovered between 12 percent and 17 percent because of the substantial increase in equity prices and slight pressure in the money market, analysts said. Bullish sentiments prevailed at the Karachi Stock Exchange (KSE) where the index reached an all time high of 6398 before much needed correction in some of the scrips namely Pakistan Oilfields, PSO, Nishat Mills, and MCB appeared to show up during weekend session, they added.
The KSE index closed at 6319 ie 34 points down from Thursday's level of 6353. The share values of the above scrips reached sky-high, and the negative impact of the news that CDC prohibiting group accounts took the steam out of the speculative drive.
"We feel that the ever-high badla investment and the badla rate have come down, which otherwise appear to be a better sign for the market", said an analyst from Capital One Equities.
Looking at the carryover counter, he said: "We see a continuous speculative run in key exploration and petroleum and oil marketing company stocks, as punters made huge badla investments in Pakistan Oilfields, OGDC and PSO, and their average badla rate also hovered around at high ranges of 17 percent.
Most notably, he said the average badla investment in POL reached a phenomenal high of Rs 5.5 billion from Rs 4.8 billion last week, as the share value of the scrip saw sentiments driven rally.
Punters also remained active in PSO, in which the average volume surged by 12 percent whereas the average investments rose to the level of Rs 4.9 billion from the preceding week's level of Rs 4.1 billion.
Some of the banking sector stocks also jumped in the carryover foray, as investors took positions in MCB and BoP, as their average badla rate soared to 17.4 percent and 17.7 percent, respectively.
The average badla volume and investments also surged in NML, whose share value has so far surpassed all expectations in a highly obsessed sentiments-driven rally.
"We feel the market may be devised by some of the important factors such as SBP tightening the monetary stance and selling the T-bills at high cut-offs", said the analyst of Capital One Equities.
Going forward, punters squaring positions owing to high badla investment levels may provide some more breather to the market and the index would continue its upward drive amid technical corrections.