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FINEX WEEK

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

Updated on May 01, 2000

The past week saw short term money market levels closing off with a bullish tone. The 2.00 to 5.00% market soon crossed into double digits after SBP picked up a large amount in the OMO on Thursday. This had been expected for some time as the money market had been running long for some time. One and two week levels also rose sharply with banks covering themselves till the next T-Bill maturity on the 4th of May. Repo trades were witnessed as high as 8.00% while call amounts were also reported to have been dealt at close to 10.00%. Towards the weekend the market experienced a shortfall with rates closing at 10.95% and approximately Rs. 4-5 billion were reported to have been discounted at SBP on Thursday and Friday.

The term repo market maintained the downward slide, since the last auction on the 20th of April. Most of the term repo trades were conducted in forward date i.e. either the 4th or the 5th of May, keeping in mind the maturity and settlement of the T-Bill in the 4th. System generated activity gripped the market and trades were witnessed as low as 4.90% from the 4th. Indication on further bring down the returns on National Saving Schemes during the week by the Finance Minister also added fuel to the fire and rates maintained a similar trend for trades from next month. Rates for three and six month tenors were available as low as 6.50% and 6.75% but trades generally remained scarce in these two tenor. Nominal amounts traded for three months as low as 6.40%. The persistent presence of excess liquidity in the market and timely announcements on further cuts in returns on NSSs before the OMO saw desperate lender placing large amounts in the five month repo and outright sale of T-Bills. The cut-off being 7.00% and 7.50% for the five month repo and outright sale with the total amount being Rs. 11 billion.

The maturity of Rs. 28.05 billion on the 4th has already shown the desperateness on the lender part after the past week with trading at bottom levels. Some dealers have been of the opinion the acceptance of the maturing amount and also keeping the present position of the market in mind rates should maintain the bullish trend. However conditions in the market have already indicated that rates have been in favour of the borrowers and will continue to be so for the next month as well. News by the Ministry of Finance on the introduction of the new bonds for the banks, pension funds, etc have already been reported and the market still awaits as to the details on this bond which would have tradable coupons.

 

YIELD PROFILE

FEDERAL INVESTMENT BONDS

  THIS WEEK 1 WK AGO 1 YR AGO

1 Year

08.25

08.25

11.15%

2 Year

09.25

09.25

13.50%

3 Year

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
Instrument Data Amount

T-Bill

06 Apr

2,300 Mln

T-Bill

20 Apr

150 Mln

T-Bill

21 Apr

150 Mln

 


 

REPO RATES

 

This Week

1 Wk Ago

1 Yr. Ago

Overnight

10.95

10.50

13.25

1 Week

09.00

08.00

12.75

1 Month

06.65

07.40

10.60

3 Month

06.70

06.95

10.15

6 Month

06.90

07.10

10.10

1 Year

07.55

07.65

N. A.

 


 

TREASURY BILL RATES
Maturing This Week 1 Wk Ago 1 Yr Ago

1 Month

07.50

07.75

11.75

2 Month

07.20

07.50

11.00

3 Month

07.15

07.25

10.75

4 Month

07.15

07.20

10.70

5 Month

07.25

07.20

10.65