Sept FIPI inflows fall by 76.3pc

RECORDER REPORT

KARACHI: The inflows of foreign investors portfolio investment (FIPI) have declined by 76.3 percent on month-on-month basis to $11.657 million in September 2012 as compared to $49.277 million came in the local equity market during August this year.

“The foreign investors interest in the local equity market seems to be reviving as they are coming back to invest in various stocks,” analysts said.

“The quantum of foreign investors’ portfolio investment in Pakistan equity market is, however, low as compared with the other regional countries,” they added.

The uncertainty on political front, deteriorating law and order situation and the country’s economic condition had been major concerns for foreign investors, who were major sellers during couple of years back.

The imposition of floor on the Karachi Stock Exchange in 2008 was another reason that shattered the foreign investors’ confidence.

“This situation is gradually improving and the foreign investors are coming back to invest at the local equity market,” an analyst said.

According to National Clearing Company of Pakistan Limited (NCCPL) data, an inflow of $61.356 million of this mode of investment was witnessed during the current calendar year.