KARACHI (January 2009): Investment under Continuous Funding System (CFS) on Karachi share market declined by 16 percent to Rs 1.1 billion January 2009. The average CFS rate remained in the range of 20-22 percent compared to previous week''s average rate of 58 percent.
"Recent positive developments on CFS counter with regard to settlement opportunities provided to financiers and financees helped restore confidence for leverage financing to some extent", Muniba Saeed, an analyst at Invest Capital and Securities, said.
Though, CFS Mk-II volumes declined by 18 percent, fresh investment in CFS financing indicated financiers" interest in equity market, which would help in boosting volumes, she added.
The top 5 scrips by CFS investment were OGDC, MCB Bank, Engro, JSCL and NBP, which cumulatively accounted for 60 percent of the total CFS investment.