CAPITAL MARKETS

 

1- FOREX KERB WATCH

2- COT WEEKLY REVIEW

3- FINEX WEEK

4. STOCK WATCH
5. STOCK MARKET AT A GLANCE
6. AN INTERVIEW WITH CEO LSE

7. PAKISTAN EQUITIES MARKET

 

FINEX WEEK


By SHABBIR H. KAZMI
Updated May 07, 2005

 

 

The inter-bank money market witnessed high volatility with activity noted in the wide band of 1.75% to 8.90%. Initially funds in overnight changed hands at comparatively lower rates. However, later after the intervention by SBP through OMO in which the Central Bank mopped up a total amount of Rs4.75 billion in one week coupled with some hidden outflows, rates started to rise. Consequently, on Friday, banks approached SBP for respite due to which heavy discounting of Rs10.16 billion was reported. Pressure was also seen in one and two week where banks, in anticipation of sharp hike in overnight rates covered their positions in the said tenors. After initially trading around 5.50% and 6.00%, the one and two weeks saw a drastic rise and changed hands at 8.00% and 7.25% respectively. One-month tenor was quoted earlier in the band of 6.25% and 6.75%. Later it too increased and bids and offers were quoted in the band of 6.75% and 7.25%. No trades were reported in longer tenors of three and six month, however bids were available at 6.70% and 7.10% against the offers at 7.20% and 7.50% respectively. Due to the prevailing interest rates scenario selling pressure continued this week also which resulted in a sharp rise in yields and the latest ten-year bond was quoted in the band of 10.35% and 10.60%.

FUTURE OUTLOOK

Rates are expected to remain at the higher side in the coming week and no major change is likely. T-bill three and twelve month is also due in the coming week against the maturity of around Rs93.47 billion. Target is expected to be below the maturity amount.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

08.50

08.25

02.60

2 Year

08.75

08.50

03.40

3 Year

08.90

08.80

03.70

4 Year

09.30

08.90

04.40

5 Year

09.40

09.00

04.83

10 Year

10.45

10.20

06.46

 


 

 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

Apr 27 T-Bill 6 Mth. Apr 27 Apr 28

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs. 20,000Mln 

Rs. 20,010Mln   

Rs. 8,160Mln

 


 

MATURITIES

INSTRUMENT

DATE

AMOUNT

T-Bill

12 May

93,475 mln.

FIB/PIB

18 May

261 mln.

FIB/PIB

24 May

1,317mln.

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

08.70

06.75

07.40

1 Week

07.25

06.50

03.50

1 Month

06.75

06.60

01.90

3 Month

06.90

06.80

02.00

6 Month

07.30

07.15

02.05

1 Year

07.70

07.60

02.20

 


 

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

1 Month

07.00

06.75

01.95

2 Month

06.90

06.70

02.00

3 Month

06.90

06.70

01.85

4 Month

07.15

07.10

01.85

5 Month

07.25

07.20

01.90