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 July 16, 2005

 

 

The week started with the intervention by SBP through OMO in which SBP accepted total amount of Rs. 8.00 billion in five and twelve days this outflow does not affect the market and activity in overnight was witnessed in the band of 5.50% and 6.50%. As the week progressed SBP conducted two more OMOs and mopped total amount of Rs. 16.80 billion. This resulted in a sharp rise in rates and the market traded overnight funds just below the discount rate at 8.90% till the close of the trading week.

Volatility was noted in one and two weeks where initial trades were dealt around 6.25% to 6.75% and 6.75% to 7.25%. However, with overnight rates at the higher side, pressure was also seen in one and two weeks and activity was noted as high as 8.00% and 8.25% respectively. One month tenor saw heavy activity and initially funds in the respective tenor changed hands around 7.25%. Later due to borrowing pressure rates took a hike and trades were evident around 7.75%. Borrowing pressure was noted in three-month tenor also where trades were struck in the band of 6.60% to 6.70%.

Due to the prevailing interest rates scenario selling was noted in T-bills in the secondary market. Initially, trades in the latest six and twelve month paper were observed around 7.90% and 8.50%. However, as banks preferred to off-load these papers to avoid capital losses, trades were witnessed at the cut-off yields of the specific papers i.e. 7.9869% and 8.6900% respectively. Rumours regarding a further rise in the discount rate resulted in selling pressure in the latest ten-year bond where trades were noted as high as 9.15%.

FUTURE OUTLOOK

Rates in the inter-bank market are likely to remain at the higher side in the coming week. T-bill auction is also due with the maturity of around Rs.25.80 billion. The market is expecting further upward adjustment in the cut-off yields.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

08.75

08.50

03.40

2 Year

08.75

08.50

05.40

3 Year

08.75

08.60

06.00

4 Year

08.90

08.60

06.75

5 Year

08.90

08.80

06.90

10 Year

09.00

09.00

08.70

 

 

 

 

 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

Jul 06 T-Bill 03 Mth. Jul 06 Jul 07
Jul 06 T-Bill 06 Mth. Jul 06 Jul 07
Jul 06 T-Bill 12 Mth. Jul 06 Jul 07

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs.120,000 Mln

Rs. 143,050 Mln 

Rs. 125,175 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

08.80

05.75

00.50

1 Week

08.15

06.00

00.75

1 Month

08.10

07.15

01.30

3 Month

08.05

07.50

01.70

6 Month

08.30

07.85

02.20

1 Year

08.70

08.35

02.65

 

 

 

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

1 Month

08.00

07.30

01.40

2 Month

07.80

07.40

01.60

3 Month

07.75

07.55

01.75

4 Month

07.90

07.70

01.95

5 Month

07.95

07.85

02.15