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 Apr 02, 2005

 

 

Six-month T-bill auction by the State Bank remained the significant news of the week as the issue received weighty participation of Rs31.80 billion against a pre-auction target of Rs10 billion. Of this, Rs22.55 billion was accepted at a cut-off yield of 56932. This was 48-basis points higher than the previous cut-off. State Bank also conducted PIB auctions for 3, 5 and 10 years with target amounts of Rs1 billion in each. Participation stood at Rs250 million, Rs350 million and Rs494 million, respectively. All bids were rejected.

Market remained calm at quarter-end due to excess liquidity. Overnight rates remained mostly on the lower side in a band of 1.00% and 1.50%. After the T-bill auction, pressure was evident temporarily in the overnight trades; deals were struck as high as 5.50%. Later due to the averaging factor, rates of overnight eased-off to levels of 1.00% to 1.50%. Volatility was seen in one and two-week where deals were struck around 2.50% and 3.00% during the early part of the week. Later, as borrowing pressure mounted, funds in the respective tenors traded around 6.00% and 5.00% and closed the week at around 4.00% and 4.50%, respectively.

In the past week, three and six month tenors saw moderate activity and bids and offers for three month was seen in a band of 4.75% and 5.10%. In the six-month tenor, bids were available at 5.65% against offers at 5.75%. Demand for T-bill was seen in the secondary market also and activity in the latest six-month paper was witnessed in a band of 5.50% to 5.60%.

 

 

FUTURE OUTLOOK

As no inflows are due in the coming week, rates are expected to hike compared to last week's closing.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

06.30

06.20

02.20

2 Year

06.60

06.60

03.00