7,686
July 15, 2009
The KSE-100 index opened up and made an intra-day high of 7,745. Volumes were relatively high today with 199.4 million shares traded.
News : The State Bank of Pakistan reduced yields on treasury bills sharply on Wednesday, giving a signal that a large interest rate cut lay ahead. The State Bank is to announce next monetary policy on July 25th. It is widely anticipated that the central bank will cut the key policy discount rate by 1.5 - 2 percentage points. The yield on six-month paper declined to 11.5151 percent from 12.4385 percent, a difference of 92 basis points. The return on one-year paper fell to 11.5392 percent from 12.2418 percent, a decline of 70 basis points. The yield on three-month paper dropped to 11.4161 percent from 12.9775 percent, a fall of 156 basis points.
Banks, flush with liquidity owing to absence of demand for loans from the corporate sector, offered Rs 151.592 billion, but the central bank raised Rs 57.207 billion. The pre-auction target was Rs 45 billion. "This confirms that discount rate is going to be cut," said a treasury official at a large local bank. "We expect a cut of 150 to 200 basis points…. Daily Times
Market Low : 7,631.66 High : 7,745.21
Market Close : 7,686.15 — 54.49 points up
