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 Sep 03, 2005

MONEY MARKET

The inter-bank money market witnessed volatility during the week. Rates were initially quoted in the band of 5.75% and 6.75%. Later, as the week progressed, rates started to hike and by mid-week, overnight trading was seen just below the discount rate 8.90%. The market witnessed a discounting of around Rs.5.30 billion. This hike in rates was however temporary and after the T-bill auction, in which SBP accepted Rs.108 billion against the maturity of Rs.120 billion, market started to ease and trading in overnight was noted in the band of 7.25% to 7.75%

Similar trend was evident in one and two weeks where trades in the beginning were conducted in the band 7.75% to 8 25%. The rates finally eased and were quoted in the band of 7.00% to 7.50%.

Volatility was seen in one-month tenor and activity prior to T-bill auction took place in the band of 7.25% and 7.50%. Later trades were witnessed as high as 7.90% and finally eased and were quoted in the band of 7.50% and 7.75%. Long term tenors of three and six month saw no major activity however borrowing interest was quoted at 7.90% and 8.10% against the offers at 8.10% and 8.20%. This week SBP conducted T-bill auction and received heavy participation of 131 billion against the maturity of Rs.120 billion. SBP maintained the cut-off yield for six and twelve months paper i.e. 8.1388% and 8.7907% and raised the yield for three-month paper by around 18 basis points. SBP accepted total amount of Rs.108 billion against the target of Rs.96 billion.

FUTURE OUTLOOK 

Rates in the secondary market are expected to ease comparatively to the previous week.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

08.85

08.85

04.00

2 Year

08.90

08.90

04.85

3 Year

08.90

08.90

05.15

4 Year

08.95

08.95

06.10

5 Year

08.95

08.95

06.15

10 Year

09.05

09.05

08.15

 


 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

Aug 31 T-Bill 0 3 Mth Aug 31 Sep 01
Aug 31 T-Bill 06 Mth Aug 31 Sep 01
Aug 31 T-Bill 12 Mth Aug 31 Sep 01

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs. 96,000 Mln 

Rs. 131,250 Mln 

Rs. 108,425 Mln

 


 

MATURITIES

INSTRUMENT

DATE

AMOUNT

T-Bill

01 Sep

96,095 mln.

T-Bill

15 Sep

02,525 mln.

FIB/PIB

17 Sep

01,177 mln.

FIB/PIB

24 Sep

02,907 mln.

T-Bill

29 Sep

58,775 mln.

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

07.25

07.25

03.50

1 Week

07.25

06.25

03.00

1 Month

07.65

07.25

02.60

3 Month

08.00

07.75

02.55

6 Month

08.15

08.00

02.85

1 Year

08.75

O8.65

03.10

 


 

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

1 Month

07.75

07.45

02.75

2 Month

07.85

07.60

02.65

3 Month

07.95

07.70

02.60

4 Month

08.00

07.80

02.70

5 Month

08.00

07.85

02.75