CAPITAL MARKETS

 

1- FOREX KERB WATCH

2- COT WEEKLY REVIEW

3- FINEX WEEK

4. STOCK WATCH
5. STOCK MARKET AT A GLANCE


FINEX WEEK


By SHABBIR H. KAZMI
Updated Feb 04, 2005

 

 

MONEY MARKET REPORT

After almost a month, respite for the borrowers as observed as rates remained at the lower side for most of the week. The market opened at the higher side with overnight activity initially seen in the vicinity of 5.25% to 7.25%. Later due to excess liquidity in the system overnight rates crashed. Despite an outflow of approximately Rs12 billion on account of OMO maturity, trades were evident in the band of 0.25% to 1.00%. One and two week saw aggressive trading as early activity took place around 6.00% and 5.75%. Later due to the heavy lending pressure, rates in the respective tenors slid and activity was noted as low as 1.25% and 2.50% respectively.

One-month tenor was also active and saw a sharp fall. However, lending pressure pushed the rates to the levels of 3.00% to 3.50%. Three and six-month tenors saw no major activity with bids available in the band of 4.25% to 4.90% against offers at 4.75% to 5.40% respectively.

This week SBP conducted six-month T-bill auction and attracted total bids of Rs5.35 billion against the target of Rs5.00 billion. With majority of participation at the higher side, the Central Bank accepted a nominal amount of Re1 billion at 4.8684$ i.e. 55 basis points above the previous cut-off.

Prevailing trend in the bond market continued. Selling pressure was observed in the last ten-year bond, which pushed the bids above the coupon rate at 8.10% against the offers at 7.95%, but no major activity was reported.

FUTURE OUTLOOK

The existing liquidity in the system coupled with no significant outflows in the week to come, rates are likely to remain at the lower side. Upto one month rates are expected to remain at the prevailing levels. In long-term bonds, selling pressure is likely to continue and further hike in yields are anticipated.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

05.30

05.30

02.60

2 Year

05.70

05.70

03.25

3-Year

05.85

05.85

03.80

4-Year

06.50

06.50

04.45

5 Year

06.85

06.85

04.83

10 Year

07.87

07.87

06.32

 

 

 


 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

Feb 02 T-Bill 06 Mth. Feb 02 Feb 03

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs. 05,000Mln  

Rs. 05,350Mln 

Rs. 01,000Mln

 


 

MATURITIES

INSTRUMENT

DATE

AMOUNT

FIB/PIB

16 Feb 

491 mln.

FIB/PIB

17 Feb 

89,900 mln.

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

00.40

05.50

00.30

1 Week

01.50

05.75

00 45

1 Month

03.50

05.00

01.30

3 Month

04.15

04.85

01.55

6 Month

04.65

05.15

01.65

1 Year

05.10

05.40

02.00

 


 

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

1 Month

05.30

05.80

01.35

2 Month

04.75

04.70

01.40

3 Month

04.70

04.50

01.45

4 Month

04.75

04.60

01.50

5 Month

04.75

04.65

01.55