KARACHI (October 16 2006): Massive inflow of portfolio investment in the country's stock market continued as $13.5 million foreign investment came in the country during the last week ending October 12.

According to the data released by the State Bank (SBP), a total of $214,514,415 has been brought into the market during the current fiscal year (from July 1, 2006 to October 12, 2006).

A huge sum of $6,456,745 portfolio investment was recorded on October 12, 2006. Investors from Hong Kong invested $2,273,709 in the country's stock market while $21,435 was invested by investors from Switzerland; $775,491 from UK; and $3,386,110 from USA during a single session.

During the first three months of current fiscal year, almost half of the investment was made from Singapore. Investors from the island have more than $101.361 million in the Special Convertible Rupee Accounts (SCRAs) to their credit. Singapore is followed by $74.995 million investment from UK and $49.276 million from USA. A total of $16.352 million investment in the country's stock market came from Hong Kong while an investment of $59,943 came from Liberia.

Whereas during the said period major outflow came from Switzerland. As Swiss investors withdrew $22.235 million from Pakistani stock markets, while investors from BV Islands took away $2.063 million and investors from the UAE took away $1.748 million from the country's equity markets.

Others who took away their investment from the country's equity market during the period under review included Bahrain ($70,641), Guernsey ($66,177), Kuwait ($848,626), Luxembourg ($34,184), Qatar ($40,546), Saudi Arabia ($423,696) and Germany ($52).

Faisal Shaji, head of research, Capital One Securities, said massive inflow of portfolio investment was witnessed due to growing banking, oil & gas and cement sector in the country. He said major share of the portfolio investment came in the banking sector and more investment is expected in this sector. Cement and E&P sectors also have much potential and these sectors could attract more investment from overseas investors in future.

Copyright Business Recorder, 2006