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 1. FINEX WEEK
 2. STOCK WATCH
 3. STOCK MARKET AT A GLANCE

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FINEX WEEK

Updated on Oct 06, 2001

The interbank market remained tight throughout the past week as the start of the new financial quarter saw the State Bank injecting only a portion of the outflow that occurred early in the week. The market also experienced further drain out of liquidity as the Treasury Bill auction caused the market to register a shortfall. Banks continued to concentrate on the three month paper resulting in the yield on this paper being brought down by as much as 18 basis points besides the nominal downward adjustment in the six and twelve month paper as well.

The overnight market was mostly in double digits throughout the past week with the trades at the 11.90% level at the end of trading hours. The make was short as the net outflow on account of the T-Bill maturity and settlement caused banks to approach SBP for respite. The discounting rose from Rs. 1.90 billion on Thursday to Rs. 8.32 billion Friday and finally touch Rs. 8.50 billion on Saturday. In the T-Bill auction banks preferred to be more interested in the three month paper, the maturity of which fell on the 27th of December i.e. before the crucial year-end. However, interesting to note was that most bids for the three papers were below previous cut-off yields which clearly seemed to suggest that rumours on the discount rate adjustment might have caused this trend to develop. Against the target of Rs. 5.52 billion. Rs. 8 billion was accepted with the new cut-offs being 10.00%, 10.40%, and 10.80% for the three, six and twelve month papers which was a downward adjustment of 18, 11 and 7 b.p.s on the respective papers. SBP did stick to its policy of unannounced OMOs and entered the market to inject Rs. 10.90 billion for one week at 9.50% against the outflow of Rs. 15.90, which did provide a breather to the market prior to the T-Bill auction. It should be noted that this was the first OMO of the new quarter and more might be there to come, keeping in mind that the month of September saw the State Bank conducting six OMOs the most conducted in any single month since September 1999.

Continuous denial has been heard from the authorities regarding the cut in the discount rate. However, participation in last week's T-Bill auction has clearly reflected that market players feel that such a move may actually be forthcoming. Also keeping in mind that the rupee did reflect significant signs of strengthening the past week, we continue to feel that a 50 b.p.s. cut in the discount rate can certainly be possible.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

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THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

11.00

11.00

14.00%

2 Year

11.50

11.50

14.50%

3 Year

12.50

12.00

15.00%

4 Year

12.75

12.25

15.50%

5 Year

13.00

12.50

15.75%

10 Year

13.50

13.00

16.25%

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AUCTIONS
BID DATE INSTRUMENT RESULT SETTLEMENT
Oct 04 T-BILL Oct 04 Oct 05
TARGET AMOUNT BID AMOUNT ACCEPTED AMOUNT
Rs. 5,520 Mln Rs. 19,700 Mln Rs. 8,000 Mln



MATURITIES

INSTRUMENT

DATE

AMOUNT

T-Bill

04 Oct 

3,960 Mln

T-Bill

18 Oct

3,600 Mln




REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

11.90

11.90

12.95

1 Week

10.00

10.00

13.25

1 Month

09.60

09.50

13.35

3 Month

09.80

09.75

13.00

6 Month

10.20

09.95

13.15

1 Year

10.55

10.10

13.25




TREASURY BILL RATES
MATURING THIS WEEK 1 WEEK AGO 1 YEAR AGO

1 Month

10.60

10.50

23.00

2 Month

09.80

10.00

14.50

3 Month

09.90

10.10

13.75

4 Month

10.10

10.20

13.65

5 Month

10.20

10.30

13.65