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FINEX WEEK

  1. Stock market at a glance
  2. Finex week
  3. Stock Watch

Updated on Apr 24, 2000

The overnight range remained relatively stable within the 6.00% to 8.75% range for most part of the week. It was surprising that in spite of an acceptance of Rs. 4.85 bln in the latest auction settlement on the 20th of the month, the market briefly touched the 10.25% level before falling lower. The overnight market reacted bearishly on Friday (21/04/2000), whereby reserve averaging dragged the overnight quote to a low of 1.50% towards the close. But the scene entirely reversed on the weekend, where early massive trades at 8.00% set the tone for the day. The close was at the peak of 10.90%, with amounts dealt being fairly decent.

The most interesting period this week was 1 month. For most part, the 1 month quote refused budge far from the 6.50% to 7.00% band but some speculative system based trading towards the tail end of the week, led to sizable volumes being traded. Initially trades in this tenor were reported at 7.25% before jumping to a high of 7.75%, but on Friday a bearish overnight outlook preempted certain lenders to lock in their funds in the 1 month tenor within 7.00% to 7.15%; this obviously proved to be an error. The 1 month quote within a span of a few minutes on the same day swelled to a high of 7.50% and on the weekend was hovering within the 7.25% to 7.50% range. But the medium to long term scenario maintained status quo. The volatility within the 1 month tenor had little or no bearing on the 3 month market. Light to moderate trades were continually noted within the 6.85% to 7.10% band in the 3 month tenor. The response to the latest auction (the settlement being on the (20/04/2000) was bearish, as noted from the bid pattern. The acceptance of Rs.500.0 mln at 6.98%, Rs. 3.85 bln at 7.23% and Rs. 500.0 mln 7.65% in the 3 month, 6 month and 1 year instrument, respectively, were all lower than the previous cut-off levels.

The outlook for next week appears to be firm. The close at 10.90% this weekend has already set the trend for next week. Interest is likely to be prevalent in the 1 month tenor, which should rise as banks running short hedge themselves against a potentially tight next 7 to 10 days. Longer tenors are however in contrast expected to remain stable.

 

YIELD PROFILE

FEDERAL INVESTMENT BONDS

1 Year 08.25 08.25 11.00%
2 Year 09.25 09.25 13.50%
3 Years 10.00 10.00 13.50%
4 Year 10.25 10.25 13.75%
5 Year 10.75 10.75 14.25%
10 Year 11.25 11.25 14.50%

 


 

AUCTIONS
Bid Date Instrument Result Settlement
Apr 19 T-BILL Apr 19 Apr 20
Target Amount Bid Amount Accepted Amount
Rs.500 Mln

Rs. 13.740 Bln

Rs.4.850 Bln

 


 

MATURITIES
T-Bill 06 Apr 2,300 Mln
T-Bill 20 Apr 150 Mln
T-Bill 21 Apr 150 Mln

 


 

REPO RATES

Overnight 10.50 07.00 12.25
1 Week 08.00 06.50 11.75
1 Month 07.40 06.90 10.10
3 Month 06.95 06.90 09.90
6 Month 07.10 07.10 10.15
1 Year 07.65 07.75 N. A.

 


 

TREASURY BILL RATES
1 Month 07.75 07.75 11.50
2 Month 07.50 07.35 11.00
3 Month 07.25 07.30 10.75
4 Month 07.20 07.25 10.60
5 Month 07.20 07.10 10.50