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 12, 2005

MONEY MARKET REPORT

 

 

Inter-bank money market witnessed volatility and rates in overnight were quoted in a wide range of 0.25% to 4.00%. Initially during the past week, overnight deals were executed in the upper band in anticipation of possible intervention by the State Bank. Upon acceptance in OMO of a small amount of Rs5.50 billion in two weeks at 4.40%, rates crashed and trades in overnight took place at the bottom levels of 0.25% to 1.00% till the closing of the week.

One and two-week saw aggressive trading around 4.50% and 4.00% respectively before touching the lower levels of 2.00% and 3.25% respectively. Volatility was also seen in one-month where initial deals were struck in the vicinity of 4.50 to 4.75% but later eased-off and touched 4.00%.

In the longer tenors, market experienced the same trend where lenders were seen reluctant to place funds at the prevailing levels. However, three-month tenor was comparatively active and bids and offers against PIB were quoted in the brand of 4.90% and 5.10%. Lenders against T-bill were seen interested to lend at levels near the expected T-bill three-month cut-off, which could be between 4.60% and 4.70%. Volatility was seen in the long-term bond market. Latest ten-year bonds saw active trading where initial selling pressure made yields touched levels of 8.35%. Later, backed by corporate demand yields fell to around 8.10% and 8.15%.

FUTURE OUTLOOK

Overnight rates are likely to remain at lower levels unless there is intervention by the State Bank. T-bill auction of three and twelve-month is also due this week against a maturity of around Rs90 billion. Market is anticipating a target of less than maturing amount. Heavy participation is expected in three-month T-bill and further hike is expected in the cut-off yields.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

05.60

05.30

02.10

2 Year

06.00

05.70

02.90

3Year

06.30

05.85

03.75

4 Year

07.10

06.50

04.40

5 Year

07.30

06.85

04.75

10 Year

08.10

07.87

06.25

 


 

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

00.40

07.45

1 Week

01.50

01.50

04.00

1 Month

03.75

03.50

01.90

3 Month

04.40

04.15

01.70

6 Month

04.80

04.65

01.75

1 Year

05.30

05.10

02.10

 


 

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

1 Month

04.10

03.80

02.00

2 Month

04.25

04.30

01.70

3 Month

04.35

04.35

01.65

4 Month

04.50

04.50

01.70

5 Month

04.60

04.60

01.75