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
7. RECORD LISTINGS AT THE KARACHI STOCK EXCHANGE

 

FINEX WEEK


By SHABBIR H. KAZMI
Updated July 02, 2005

 

 

Inter-bank money market was characterized by heavy liquidity crunch at the year-end and rates across the board remained at the higher side.

Paucity of funds kept overnight rates at high levels with activity throughout the week witnessed just below the discount rate at 8.90%. Heavy discounting was reported during the entire week with no intervention by SBP reported. With overnight rates at the higher side, pressure was also seen in one and two week where bids were available at 8.25% and 7.75% against the offers at 8.75% and 8.25% respectively. Due to the prevailing uncertainty about interest rates, banks were seen reluctant to go for longer tenors. However three and six months bids were available at 7.50% and 7.70% against the offers at 7.80% and 8.10% but no major deals were observed.

Demand for T-bill was present in the secondary market and bids and offers for the latest one year T-bills was quoted in the band of 8.35% and 8.25% and trades were dealt around 8.30%. Long-term securities saw aggressive trading and demand for latest ten-year bond was seen in the market. As a result of heavy buying pressure, trades in the respective securities was noted as low as 8.50%.

FUTURE OUTLOOK

Rates are expected to ease-off in the coming week. T-bill auction is also due in the week to come against the maturity of Rs.126.30 billion. Market is expecting no further rise in the cut-off yields for the designated papers and SBP may match the previous cut-off yields.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

08.30

08.30

03.40

2 Year

08.30

08.30

04.60

3 Year

08.30

08.30

05.50

4 Year

08.35

08.35

06.10

5 Year

08.50

08.40

06.50

10 Year

08.90

08.90

07.78

 


 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

June 22 T-Bill 03 Mth. June 22 June 23
June 22 T-Bill 06 Mth. June 22 June 23
June 22 T-Bill 12 Mth. June 22 June 23

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs. 20,000 Mln 

Rs. 116,233 Mln 

Rs. 81,033 Mln

 

 

 


 

MATURITIES

INSTRUMENT

DATE

AMOUNT

T-Bill

07 July

126,296 mln

FIB/PIB

13 July

01,457 mln.

FIB/PIB

20 July

01,558 mln.

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

08.00

08.95

00.15

1 Week

07.75

09.00

00.40

1 Month

07.35

07.85

01.40

3 Month

07.55

07.65

01.90

6 Month

07.85

07.90

02.30

1 Year

08.20

08.30

02.70

 


 

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

1 Month

07.50

07.80

01.65

2 Month

07.45

07.50

01.90

3 Month

07.45

07.45

02.00

4 Month

07.70

07.75

02.10

5 Month

07.85

07.85

02.20