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  1. The KASB review
  2. Finex week

Updated on 19th July, 1999

Short Term

The interbank market in the early parts of the week went short on account of the outflow by way of the increase in the SLR. Overnight trades were conducted at 12.90% and 12.95% but levels did ease but only marginally.

Some activity was also witnessed at 1250% upon the injection of liquidity into the system by SBP. However the injection of Rs. 4.75 billion was insufficient and the following day i.e. Friday the market was short but approximately Rs. 4.5 billion. Rates closed at 12.90% at the end of the weekend though the system registered an OMO maturity of Rs. 2.30 billion but not much change could be witnessed with the market closing back to a 12.90% at the end of the day. The two week tenor saw active interest prevailing in the market. Earlier two week rates shot upto to 11.25% but later fell back to 10.00% at which nominal amounts were traded.

Medium Term

Volatility persisted in the term market with rates rising in the earlier parts of the week but gradually easing off and rising back at the end of the week. One month levels went to as high as 11.25% with no activity but later fell back into single digits and trades were witnessed at around 9.00%. The ease in levels was only due to the injection of Rs. 4.75 billion for one week at a rate of 8.25%. One month bids and offers remained at 8.60% and 9.00% on Saturday but trades were scarce. The three month tenor did see moderate activity but only when rates fell below 8.00%. On seeing the discounting figure being reduced considerably on Wednesday lenders were quick to react and placed funds between 7.70% and 7.90% but again trades were conducted around the same levels after the OMO. The six month did nor generate any significant interest in the past week with offers in the band of 9.00 and 9.25% but bids remaining at close to 8.50%.

Lone Term

Long dated instruments failed to gain any major interest, eitherway.