KARACHI: Regular Carry-over Transaction (CoT) market at the Karachi bourse saw rates settled in double-digit territory despite funds continue to pour into this market, figures released on Saturday showed.

The Karachi Stock Exchange (KSE) closed positive for the 8th consecutive week on last Friday and the weighted average CoT rates rose to 13.2 per cent compared to 10.8 per cent a week ago.

With bond yields in the inter-bank market being pushed up owing to the huge Rs30 billion target for the next Pakistan Investment Bond auction, the CoT rates have also experienced a slight upward thrust.

However, with the money market still fairly liquid, there seems to be no problem as far as obtaining financing in first-tier stocks is concerned. But slight concern may be warranted at inability of some borrowers to find lenders even at rates as high as 24 per cent for second-tier stocks.

It is believed, with June-end approaching, some CoT financiers may choose to restrict lending for a couple of days in the coming week, but things are likely to return to normal once new fiscal year begins.

"PSO's (Pakistan State Oil) absence from the CoT counter may have served to push up rates further, since it's CoT rate is usually below the market average, and it accounts for around 20 per cent of the CoT investment at the KSE," said Mohammed Sohail at Invest Capital and Securities.

Whereas, at Lahore Stock Exchange the rates rose to 11.6 per cent with the CoT rates in Hub Power Company and Pakistan Telecommunication Company Limited moving into double-digit range.

After reaching a high of Rs14.7 billion on June 18, the total CoT investment at the KSE and LSE stood at Rs14.2 billion on last Friday compared with Rs13.9 billion a week earlier.

The CoT investment at the KSE last Friday was Rs12.7 billion, denoting a slight increase over the Rs12.3 billion recorded over the week ago.

"We believe that this Rs12.7 billion investment may be slightly understated, as towards the end of the CoT session yesterday, few borrowers were left stranded with no lenders willing to venture into second-tier scrips," said Sohail.

The CoT investment at LSE stood at Rs1.5 billion last Friday as against Rs1.6 billion on the previous Friday.