The phasing out of badla market and enough liquidity in the system reduced the carry over rates to 16 percent at KSE on Friday, down by 440 basis points from last Friday. Declining Badla rate reflects genuine buying and excess availability of funds. One reason for this is the gradual phase out of leading stocks from the Badla market. Supply of funds has also improved after low activity in the future market, where some institutions had invested significant amount of money in the ready-future hedging.