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. SECP REPORT

 

FINEX WEEK


By SHABBIR H. KAZMI
Updated Aug 06, 2005

 

 

MONEY MARKET

The rates in the inter-bank market opened at the higher levels as expected. Due to borrowing pressure activity was evident mostly in the band of 8.25% to 8.90%. Overnight rates started to ease after the T-bill auction in which the SBP accepted total amount of Rs.57.47 billion against the maturity of Rs.86 billion. As a result, rates in inter-bank market crashed and funds in overnight were available as low as 3.00%. After this sharp fall, the SBP intervened and mopped a total amount of Rs.18.10 billion in thirteen days OMO. This outflow was insignificant and rates touched the lower levels of 1.00% to 1.50%. Volatility was seen in one and two week where initially trades were witnessed in the band of 8.00% and 8.50% in the respective tenors. Later as the week progressed rates started to ease and finally were quoted in the band of 5.00% to 6.00% for one week and 5.50% to 6.50% for two weeks. One month saw moderate activity where early trades were struck in the band of 7.90% and 8.20%. Later these too eased and were quoted in the band of 7.20% and 7.70%. Aggressive covering was noted in three months tenor where prior to the T-bill auction, trades were executed around 7.90% and later eased with bids and offers quoted in the band of 7.60% and 7.80%. In six months tenor, bids and offers were quoted in the band of 8.05% and 8.10% but no major trades were witnessed. This week SBP conducted T-bills auction and received total participation of Rs.91.77 billion against the target of Rs.70 billion. SBP accepted Rs.57.47 billion at the cut-off yields of 7.8297%, 8.0954% and 8.7907% for the designated papers, which was around 13, 11 and 09 basis points higher than the previous cut-off yields.

FUTURE OUTLOOK

No major change in trend is expected in the market and rates are likely to remain at the higher side.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

08.85

08.80

03.80

2 Year

08.90

08.85

05.10

3Year

08.90

08.85

05.45

4 Year

08.95

08.95

06.25

5 Year

08.95

08.95

06.45

10 Year

09.05

09.05

07.90

 

 

 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

Aug 03 T-Bill 03 Mth. Aug 03 Aug 04
Aug 03 T-Bill 06 Mth. Aug 03 Aug 04
Aug 03 T-Bill 12 Mth. Aug 03 Aug 04

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs. 75,000 Mln 

Rs. 91,775 Mln  

Rs. 58,475 Mln

 

 

 


 

MATURITIES

INSTRUMENT

DATE

AMOUNT

T-Bill

04 Aug

86,020 mln.

FIB/PIB

20 Aug

01,597 mln.

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

06.50

08.80

00.25

1 Week

07.50

0.825

00.75

1 Mondh

07.90

08.05

01.35

3 Mondh

07.90

08.00

01.90

6 Month

08.10

08.25

02.40

1 Year

08.70

08.65

02.90

 

 

 

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

1 Month

07.75

08.00

01.60

2 Month

07.75

07.95

01.80

3 Month

07.70

07.90

01.90

4 Month

07.85

08.00

02.20

5 Month

07.95

08.05

02.45