KARACHI (November 14 2006): Balances under Special Convertible Rupee Accounts (SCRAs) plummeted to $298.8 million on November 10 after having reached a record high level of $340 million on November 6.

Accordingly, SCRAs, which showed a net arrival of fresh funds of $27.7 million up to November 6, exhibited a net outflow of $13.8 million on November 10 indicating that during the intervening four days investors had withdrawn $41.4 million.

Details show that the largest amount, of $19.7 million, was disinvested by UK ($18.2 million), Singapore ($4.5 million), and Hong Kong ($0.7 million). A small amount of $0.2 million was also withdrawn by Luxembourg.

However, the largest disinvestor so far, namely Switzerland, brought in fresh funds amounting to over $1 million during this period so that its debit balance, which stood at $29.5 million on November 6, improved to $28.4 million on November 10. UAE also improved its already positive balance of $0.5 million on November 6 to $1.1 million on November 10.

In the meanwhile, KSE 100 Index stood reduced to 10,739.45 at the end of last week compared to previous week's 11,246.71 points, eroding Rs 135 billion from market capitalisation of shares. The KSE 30-share index and other indices followed suit, falling sharply in their own way. A combination of factors, including victory of the Democrats in the US mid-term Congress elections, investors' worries about conversion of in-house badla into the CFS, and expected submission of SECP report on previous crash of the stock market held investors at bay to fuel the bullish sentiment in the market.

(Report by research.dept@aaj.tv)

Copyright Business Recorder, 2006