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Pakistani o/n rates lower; rupee, stocks flat
Reuters - Thursday, March 11
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KARACHI, March 10 - Pakistan's short-term money rates ended lower on Wednesday following an injection of funds by the central bank, while dealers said they were waiting for the result of a treasury bill auction due later in the day.
Overnight call rates ended between 12.10 percent and 12.40 percent, marginally lower than Tuesday's close of 12.40 percent.
"From the bid pattern, it seems like there will be a rise in the cut-off yields," said a brokerage dealer, referring to the treasury bill auction.
There was participation by commercial banks of about 130 billion rupees and the State Bank of Pakistan has an auction target of 90 billion rupees .
Dealers said there were inflows of 22.70 billion rupees as the central bank conducted a 3-day reverse repo. [SBPK10]
The next inflow is of about 82 billion rupees ($970.4 million), scheduled for Thursday, and the next outflow is of about 84 billion rupees , scheduled for Saturday, dealers said.
In the currency market, the rupee <PKR=> ended almost flat at 84.50/55 to the dollar compared with Tuesday's close of 84.51/57.
There were few import payments in the market, and portfolio inflows had provided some support over recent days, they said.
According to official data, foreigners have bought shares worth a net $36.34 million this month.
The rupee ended at an all-time closing low last week and hit an all-time low of 85.15 last month.
Dealers said the rupee may firm in the event of more dollar selling by exporters and if external flows started to come in. But the medium-term outlook remained weak.
The rupee has lost 0.24 percent against the dollar this year after losing 6.17 percent last year and a 22.12 percent slide in 2008.
Stocks also ended flat as dealers said investors booked profits above 9,800 points after the market had gained in the four previous trading sessions.
The Karachi Stock Exchange's benchmark 100-share index <.KSE> fell 2.05 points, or 0.02 percent, to end at 9,784.98 points on turnover of 108 million shares. (For more Reuters coverage of Afghanistan and Pakistan, see: http://www.reuters.com/news/globalcoverage/afghanistanpakistan)
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