Stable Trend Presaged In Securities

Government security prices are likely to remain stable with an upward bias during this week. Money market dealers said that though liquidity is not a problem, as prices are already at very high levels, any further increase will attract profit-booking.

A dealer with a foreign bank said he did not see much upward scope for prices. "They are already very close to their highest-ever levels. Hence nobody will dare to build up huge position at this level," he said.

The market is also waiting for the budget to be announced after a month. A dealer said: "the stability in the government security market is expected to continue till February end. The budget will give an indication whether the rate of interest can fall any further or not. Depending on that the market participants will take decision."

Another dealer said: "there is concern over India-Pakistan border situation as well which has tensed up afresh after the missile test by India. If Pakistan replies, there could be fall in the prices as well."

He, however, added that the liquidity is very good and such a shock can have only limited impact.

On Friday, security prices were up marginally in the morning, but it had lost the substantial part of its gain due to selling pressure.

The treasury head of a private sector bank said the Friday trend is likely to be repeated during this week as well.