KARACHI: The futures spread in PSX saw a breathtaking contraction of 548 basis points (bps) over the week. The spread—a critical gauge of market expectations and near-term premium—narrowed sharply from 11.15 percent to settle at a significantly lower 5.67 percent. This profound change suggests that the intense bullish pressure or aggressive hedging that drove the spread wide is now dissipating, guiding the derivatives market toward a potentially calmer posture.
The Average Daily Turnover (ADTO) in the futures market decreased across the board. In terms of sheer volume, the number of shares traded fell by 15.1 percent, dropping from 206.40 million shares last week to 175.30 million shares.
Mirroring this decline, the financial value of the daily trades also saw a significant dip. The Average Daily Turnover decreased by 15.3%, moving from Rs11.23 billion to Rs9.51 billion.
Analysts say the synchronised reduction in both the spread and the trading volumes paints a consistent picture: investors and traders are pulling back their exposure from the futures segment.
Copyright Business Recorder, 2025
Comments
Comments are closed for this article.