Foreign investors at the stock market remained net sellers of shares worth $3.845 million during the week ended on November 26, 2011. It was the second consecutive week when the offshore participants opted for selling as an outflow of $1.316 million of this mode of investment was seen during previous week.
According to National Clearing Company of Pakistan (NCCPL) data, the cumulative outflow of foreign investors' portfolio investment stood at $1.095 million during the current month as the foreign investors were net buyers of shares during the first two weeks of this month. An inflow of $1.967 million and $2.099 million was seen during the first and second weeks of the month respectively. A massive outflow of $82.203 million of this mode of investment was seen during last month.
According to the data, the foreign investors have been continuously offloading their holdings and they withdrew $99.133 million from the equity market during the current calendar year--from January 1, 2011 to November 25, 2011--as compared to $440.219 million during the same period of last year. Analysts said that the global economic situation had forced the foreign investors to withdraw their investments from global equity markets. Same situation has been seen in the other regional equity markets with massive outflows of foreign investment, they added.
On the other hand, analysts believe that prevailing political and law and order situation in the country is another reason behind these outflows from the equity market. The Karachi share market witnessed declining trend during the week and the KSE-100 index lost 289.67 points to close at 11,648.14 points. Selling was seen mainly from foreign investors while the participation of local players remained extremely low.
Comments
Comments are closed for this article.