08/09/2008
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Outlanders subtract $8.49mn from stocks
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Ghulam Raza Rajani
KARACHI: Political stalemate along with weakening economic indicators forced the foreign investors to offload their holdings as net portfolio investment in the stock market witnessed further pull out of $8.49 million by the offshore investors during the week ended September 5, 2008.
According to Special Convertible Rupee Accounts (SCRAs) balance, a net outflow of $226.95 million has been reported in FY09. On the side of the picture, National Clearing Company of Pakistan Limited (NCCPL) showed net outflow at $139.45 million in FY09 to date.
According to the State bank of Pakistan, from July-September 5, 2008, the total outflow of foreign investment from the local bourses stood at $471.45 million and inflow amounted to $ 244.5 million.
Investors belonging to five out of nine countries poured in their dough to capital market on the last few trading days of the week mainly due to the investors' expectations of reduction in political uncertainty after the Presidential Elections which according to them will ultimately bring government focus round to economy's medication.
Investors from Luxembourg, Singapore, UK, Hong Kong and UAE invested $2.31 million, $1.23 million, 754 thousand dollar, 751 thousand dollar and 1 thousand dollars respectively from the stock market during the above mentioned period. While on the flip side, investors from four countries cumulatively ejected $13.55 million in local bourses.
USA, Australia, Switzerland and Korea expelled $8.73 million, $3.15 million, $1.65 million and 22 thousand dollar respectively.
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