CAPITAL MARKETS

 

1- FOREX KERB WATCH

2- COT WEEKLY REVIEW

3- FINEX WEEK

4. STOCK WATCH
5. STOCK MARKET AT A GLANCE
6. PAKISTAN WEEKLY REVIEW

 

FINEX WEEK


By SHABBIR H. KAZMI
Updated June 04, 2005

 

 

MONEY MARKET REPORT

Overnight rates mostly remained at the lower side an activity throughout the week was noted as rock bottom levels. The State Bank continued to mop up excess liquidity from the system and conducted two OMOs of a total amount of Rs21.80 billion in two weeks at 5.25%. With a heavy outflow of Rs21.80 billion from the system no major movement was seen in rats and the market closed with overnight funds changing hands in the band of 0.25% to 0.75% respectively. One and two week rates mostly were confined in the band of 3.50% to 4.50% and 4.50% to 5.00%.

Towards the weekend, however, rates eased and activity in the respective tenors was noted around 3.00% and 4.00% respectively. One month was the most active tenor where aggressive activity was witnessed and activity throughout the week was confined in the band of 5.75% to 6.25%. Long-term saw no major activity. However, borrowing interest in three and six month was present at 6.75% and 7.25% against the offers at 7.10% and 7.70% respectively. Demand for T-bill was seen in the secondary market and trades in latest three month T-bill initially dealt around 7.25%. Later, due to the buying pressure bids and offers were quoted around 6.85% and 6.75%.

FUTURE OUTLOOK

Rates are expected to remain at the lower side due to the prevailing liquidity in the system. T-bill auction for three, six and twelve month's tenors are also due in the coming week and market is expecting no drastic rise in the cut-off yields.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

08.40

08.50

03.80

2 Year

08.60

08.65

04.75

3 Year

08.90

09.00

05.45

4 Year

09.10

09.30

05.80

5 Year

09.25

09.40

06.20

10 Year

10.00

10.20

07.73

 

 

 


 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

May 25 T-Bill 06 Mth. May 25 May 26

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs. 12,000 Mln 

Rs. 22,711 Mln 

Rs. 510 Mln

 


 

MATURITIES

INSTRUMENT

DATE

AMOUNT

T-Bill

09 June

76,800 mln.

FIB/PIB

18 June

7,298 mln..

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

02.50

01.75

00.45

1 Week

03.75

04.00

01.00

1 Month

05.95

06.50

03.00

3 Month

06.85

07.20

02.75

6 Month

07.40

07.50

03.00

1 Year

07.85

07.90

03.25

 


 

 

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

1 Month

06.25

06.75

03.00

2 Month

06.80

07.15

02.90

3 Month

06.90

07.25

02.90

4 Month

07.10

07.45

02.90

5 Month

07.20

07.5S

03.00