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FINEX WEEK

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

Updated on Jun 05, 2000

The interbank market maintained an upward trend throughout the past week with banks having to finally availing the discount window towards the tail end of the week. Overnights did trade around 3.00% and 5.00% early in the week but spiked on Thursday on account of the settlement of the T-Bill auction. According to unconfirmed reports a maximum of Rs. 9 billion was discounted on the last day of the reporting week i.e. Friday. Draw downs on account of commodity financing have also contributed towards the outflows from the system. Reports of tax collections also being debited by the monetary authorities from the nationalized banking sector made matters worse. Banks having borrowed one week funds earlier at 6.50% and 7.50% were lucky as one week levels shot up to 10.50% with amounts reportedly traded at these levels. Also nominal rupee outflows from the market on account of the sale of dollars by the SBP in the interbank added to the liquidity crisis.

Brisk activity was reported in the term repo market in the past week. Concentration however remained in transactions over the fiscal year end beside heavy borrowing interest in call transactions as well. Significant spreads were witnessed between call and repo levels with bids and offers for three, four and six month being quoted at close to 9.50%, 9.50% and 10.00%, respectively. Early in the week borrowers in repos extending over June 30th were witnessed picking funds around 8.00% while later some activity was also reported at around 8.30%. The two month tenor saw activity traded between 7.90% and 8.10% while moderate amounts were traded in three and four months between the narrow band of 7.30% and 7.40%. The T-Bill auction saw the total acceptance of Rs. 1.235 billion against the target of Rs. 2.64 billion. SBP maintained the cut-offs at 6.98%, 7.23% and 7.61 % for the three papers, respectively.

Further reductions in the cut-offs cannot be ruled out in the future keeping in mind the announcements made by the Finance Minister in the past. However the current conditions in the interbank market are definitely conducive towards this happening at least before the end of the current fiscal year.

 

YIELD PROFILE

FEDERAL INVESTMENT BONDS

  THIS WEEK 1 WK AGO 1 YR AGO
1 Year 08.00 08.00 09.25%
2 Year 08.75 08.75 10.00%
3 Year 09.25 09.25 12.75%
4 Year 09.50 09.50 13.00%
5 Year 10.00 10.00 13.75%
10 Year 10.75 10.75 14.25%

 


 

AUCTIONS
Bid Date Instrument Result Settlement
May 31 T-BILL May 31 Jun 01
Target Amount Bid Amount Accepted Amount
Rs. 2.640 Bln Rs. 4.895 Bln Rs.1,235 Mln

 


 

MATURITIES
Instrument Data Amount
T-Bill 01 June 50 Mln
T-Bill 15 June 1,750 Mln
T-Bill 23 June 1,045 Mln
T-Bill 29 June 100 Mln

 


 

REPO RATES

 

This Week

1 Wk Ago

1 Yr. Ago

Overnight 10.95 06.00 01.00
1 Week 10.50 06.75 01.50
1 Month 08.20 07.00 04.50
3 Month 07.50 07.20 07.10
6 Month 07.50 07.20 08.25
1 Yeas 07.65 07.50 N. A.

 


 

TREASURY BILL RATES
Maturing This Week 1 Wk Ago 1 Yr Ago
1 Month 09.10 07.65 05.75
2 Month 08.50 07.45 06.75
3 Month 07.75 07.40 07.50
4 Month 07.65 07.35 07.75
5 Month 07.60 07.20 08.10