Total investment under the continuous funding system (CFS) on the Karachi Stock Exchange week-on-week basis has declined by nine percent to Rs 22.27 billion against Rs 24.48 billion in the previous week.
Analyst said many of the badla eligible securities were subjected to spot trading during the week. Muhammad Sohail, an analyst at JS Securities, said it was due to this reason that weak holders offloaded their positions in these scrips.
This could also be the reason that open interest at derivatives counter increased to Rs 9.8 billion from Rs 8.9 billion in the last weekend as investors leveraged them through the futures market. Analysts attribute the fall partly to lesser demand for liquid funds.
Rate of return at the CFS counter remained stable at 13.4 percent, whereas cost to carry in the futures market increased by 84bps to 8.2 percent. The upper limit of the investment under CFS is Rs 24.5 billion.