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 11, 2005

 

 

MONEY MARKET REPORT

The inter-bank market was characterized by volatility with rates mostly remaining in the vicinity of 4.50% to 5.50%.

The SBP conducted three, six and twelve month T-Bill auction this week and took the market surprise by accepting a heavy amount of Rs108 billion against the target of Rs77 billion. SBP accepted Rs73.27 billion in three months at the cut-off yield of 7.5147%, Rs23.32 billion in six months at the cut-off yield of 7.9869% and in one year accepted Rs12 billion at the cut-off yield of 8.4477%. Bids and offers in the latest T-Bill of three month was quoted at 7.50% and 7.25% and for six month T-bill was quoted in the band of 8.25% and 8.35% respectively.

After the T-Bill auction in which the SBP accepted a heavy amount of Rs108 billion against a maturity of Rs103 billion, rates started climbing upwards. Funds in overnight changed hands in the band of 8.00% to 8.50% and finally banks approached SBP to cover their short fall due to which discounting of Rs6.60 billion was reported on Friday. Rising trend was also evident in one and two weeks. Initially funds in the respective tenors changed hands around 4.75% and 5.25% and finally activity in one and two week was witnessed as high as 7.25% and 6.25% respectively. Banks were seen more interested in one month and early trades were seen in the band of 6.00% to 6.50%. As the week progressed, rates in the respective tenor took a hike and activity was witnessed as high as 7.25%.

Long-term tenors were rather 'quiet' and no major activity was observed due to strong rumors of a further rise in the discount rate. Borrowing interest prior to T-Bill auction in three and six month was present at 6.75% and 7.60% against the offers at 7.25% and 7.90%. Later rats in three and six month hiked and bids were quoted at 7.25% and 7.75% against the offers at 7.75% and 8.25%.

FUTURE OUTLOOK

The short-term rates in inter-bank market are expected to ease comparatively to week closing. However, due to the prevailing uncertainty over the interest rates scenario long-term rates are expected to remain at the higher side.

 

 

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

08.60

08.40

03.40

2Year

08.70

08.60

04.50

3Year

08.90

08.90

05.25

4 Year

09.10

09.10

05.70

5 Year

09.25

09.25

06.15

10 Year

09.95

10.00

07.82

 


 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

June 08 T-Bill 03 Mth. June 08 June 09
June 08 T-Bill 06 Mth. June 08 June 09
June 08 T-Bill 12 Mth. June 08 June 09

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs. 77,000 Mln 

Rs. 124,276 Mln 

Rs.108,601 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

04.00

02.50

00.15

1 Week

05.00

03.75

00.50

1 Month

06.70

05.95

02.40

3 Month

07.25

06.85

02.35

6 Month

07.70

07.40

02.60

1 Year

08.20

07.85

02.90

 


 

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

1 Month

06.90

06.25

02.50

2 Month

07.00

06.80

02.40

3 Month

07.30

06.90

02.35

4 Month

07.60

07.10

02.35

5 Month

07.70

07.20

02.40