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Money Market, Forex and General News - 11-06-2009
Friday, June 12, 2009

MONEY MARKET

Pakistan's central bank sold 6.00 billion rupees of Treasury bills in two-day repo contracts at 9.60 percent to mop up liquidity from the money market.

FOREX

The inter-bank market opened at 81.00 & 81.05.Market topped at 81.02 but healthy supplies of US dollars in the market pulled the rates down to 80.80.Rupee strengthened by gaining twenty basis points each side to close at 80.80 & 80.85.
The Foreign Exchange Exposure Limit (FEEL) of authorize dealers has been enhanced to 20.0% of Paid up capital with a cap of Rs 2 billion from 15% and a cap of Rs 1.5 billion previously

GENERAL NEWS

According to the latest data released by the Federal Bureau of Statistics, CPI inflation has clocked in at 14.4%YoY in May’09, marginally lower than our forecast of 14.6%-14.8%YoY. This represents a substantial decline of 2.8% as compared to 17.2%YoY CPI inflation in Apr’09.
What is very significant is that “Core” inflation has showed its steepest decline since Feb’06, where it has declined by 1.1% in May’09 to reach 16.6%YoY as compared to 17.7%YoY in Apr’09.
The substantial drop in Core inflation in May’09 represents the initiation of a process which should continue at least over the next 4-6 months, if the recent pickup in international commodity prices does not sustain.
The SECP backed Consultative Group on Capital Markets has unveiled the newly proposed ‘Margin Financing (MF)’ leverage product for the stock market.
The proposed MF model will provide the following types of ready market financing:
1. Third party funding for both proprietary and client purchases.
2. Brokers using own funds to finance ready market purchases of clients

Labels: Economy and Business, Pakistan Economy

posted @ 9:28 AM,

1 Comments:

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