CAPITAL MARKETS

 

1- FOREX KERB WATCH

2- COT WEEKLY REVIEW

3- FINEX WEEK

4. STOCK WATCH
5. STOCK MARKET AT A GLANCE
6. STOCKS MARKET TUMBLING

 

FINEX WEEK


By SHABBIR H. KAZMI
Updated May 21, 2005

 

 

Inter-bank money market opened with rates at the higher side with activity initially noted in the vicinity of 8.25% and 8.75%. Overnight rates eased off after the Central Bank's injected Rs8.90 billion through two OMOs. Consequently, the rates crashed and activity in overnight was evident in the band of 1.00% to 2.00%. With rates at the lower side, SBP conducted its third OMO to mop up the excess liquidity and accepted Rs7.60 billion in two days following which rates moved up temporarily and funds in overnight changed hands in the band of 3.00% to 3.50%.

Finally rates eased and towards the weekend, deals in overnight were executed in the vicinity of 0.75% to 1.25%. Aggressive activity was noted in one and two weeks and initially trades were reported around 8.50% and 8.00% in the respective tenors. Later as the overnight rates eased sharp fall was noted in one and two weeks and finally trades were dealt around 5.00% and 6.25% respectively.

With maturity of two months due over June, aggressive covering was also seen in the said tenor with activity noted in the band of 7.75% and 8.00%. One month was initially quoted at the higher side but later rates eased and bids and offers were quoted in the band of 6.70% to 7.20%. Longer tenors of three and six months saw no major activity, however, bids were quoted at 7.75% and 8.00% against the offers at 8.00% and 8.40%.

In long-term bonds, buying pressure was noted due to which yield for latest ten-year bond slipped and trades were evident in the band of 10.25% to 10.35%.

FUTURE OUTLOOK

Rates are expected to remain at the lower side in short term and major activity is likely to be confined in the shorter tenors. Six month T bill auction is also due in the coming week. No major participation is anticipated due to the rising interest rates scenario.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

08.70

08.90

02.80

2 Year

09.00

09.20

03.50

3 Year

09.10

09.40

04.02

4 Year

09.40

09.75

04.70

5 Year

09.50

09.90

05.00

10 Year

10.30

10.75

06.75

 

 

 


 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

May 11 T-Bill 12 Mth. May 11 May 12
May 11 T-Bill 3 Mth. May 11 May 12

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs. 70,000Mln 

Rs. 90,495Mln  

Rs. 87,720Mln

 

 

 


 

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

05.50

08.50

00.20

1 Week

06.25

08.50

00.55

1 Month

07.25

08.20

01.70

3 Month

07.90

08.15

02.30

6 Month

08.10

08.35

02.40

1 Year

08.55

08.60

02.55

 


 

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

1 Month

07.40

08.35

01.85

2 Month

07.60

08.25

02.20

3 Month

07.55

07.60

02.10

4 Month

07.70

07.80

02.15

5 Month

07.80

07.85

02.20