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 Mar 05, 2005

 

 

Lenders preferred the shorter tenors in a rising interest rate scenario. With a total inflow of Rs50 billion from two maturing OMO in the system during the past week, overnight rates remained under pressure and overnight funds were traded as low as 0.25%. On Thursday, State Bank conducted a fresh OMO and unexpectedly mopped Rs.51 billion for two weeks at 3.69%. This move by the SBP resulted in a sharp rise in rates and overnight funds jumped to around 4.00%. However, due to the averaging factor, rates at the end of the week eased back to around 0.25%. Aggressive trading was seen in the one and two-week tenors. One week was traded between 1.25% to 3.50% and two-week between 2.00% and 4.25%. No major volumes were traded in the three and six-month tenors but bids were seen around 4.40% and 4.75% against the offers at 4.75% and 5.20%, respectively.

Demand for T-bill was seen in the secondary market where the latest three-month paper was traded around 4.60%. This demand for T-bills resulted in aggressive participation by Rs71 billion in the six-month T-bill auction against a pre-auction target of Rs40 billion. SBP accepted a relatively small amount of Rs15 billion at a cut-off yield of 5.2056% which was around 33 basis points higher than the previous cut-off.

FUTURE OUTLOOK

No fresh inflows are expected in the system and short term rates may stay firm compared to the last week. Lenders are also likely to restrict their lending to the shorter tenors.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

05.90

06.00

02.15

2 Year

06.25

06.40

02.90

3 Year

06.40

06.50

03.65

4 Year

07.25

07.40

04.40

5 Year

07.40

07.45

04.69

10 Year

08.21

08.26

06.32

 


 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

Mar 02  T-Bill 06 Mth Mar 02  Mar 03 

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs. 40,000Mln 

Rs. 71,195Mln 

Rs. 15,820Mln  

 

 

 


 

MATURITIES

INSTRUMENT

DATE

AMOUNT

FIB/PIB

16 Mar 

03,278 mln

T-BILL

17 Mar 

36,950 mln.

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

06.00

00.75

00.35

1 Week

05.50

01.25

00.80

1 Month

04.65

03.80

01.40

3 Month

04.60

04.45

01.55

6 Month

05.15

05.10

01.65

1 Year

05.85

05.70

01.95

 

 

 


 

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

1 Month

04.90

04.10

01.45

2 Month

04.50

04.40

01.50

3 Month

04.60

04.50

01.50

4 Month

04.70

04.70

01.60

5 Month

04.80

04.90

01.70