Portfolio investment in the country''s equity market has for the first time crossed the $900 million mark to reach $906.774 million on June 22, 2007. Analysts say that continuous inflow of portfolio investment in local equity market shows increasing interest of foreign investors to invest here and it is also their trust in this fast growing economy.
According to the figures released by the State Bank of Pakistan, total portfolio investment as represented by Special Convertible Rupee Accounts (SCRAs) reached $906,774,748 on June 22 due to massive inflow from Hong Kong and UK.
Massive inflow of portfolio investment was witnessed during the current month as $151.280 million in this account came from June 01 to June 22, 2007, while $39.737 million increase in SCRAs balances was witnessed in last three days, and $7.083,644 came only on June 21, 2007.
The recent increase from Hong Kong and UK on June 21 was $3,521,099 and $9,089,045 respectively. However, their was a net outflow of $5,305,288 by investors of USA on the same date.
From June 1 to June 21, the investment from USA was at the top at $97,422,695, followed by UK $66,036,721, Japan $6,823,239, Hong Kong $4,553,643, France $2,553,782 and Qatar $34,951. On the other hand, the outflow of $13,909,797 was registered by Switzerland investors, $1,065,136 by UAE, $5,613,792 by Singapore, $135,318 by B V Island, $59,258 by Luxembourg and $14,701 by Germany.
In overall position, from July 1, 2006 till date, US investors were at top as their investment reached $680,822,387, followed by UK $202,282,733. The investment from Netherlands reached $44,124,443, Hong Kong $31,340,071, Kuwait $14,176,417, Singapore $7,245,229, Germany $7,111,896, Japan $7,074,298, France $376,040, Bahrain $127,018, Qatar $14,926 and Oman $2,823.
The outflow of SCRA balances from July 1, 2006 till date (June 21, 2007) was $72,373,368 by Switzerland, $6,916,235 by Australia, $1,852,249 by B V Island, $3,224,050 by UAE, $1,073,665 by Luxembourg, $781,330 by Bahamas, $497,210 by Malaysia, $468,835 by Guernsey, $423,696 by Saudi Arabia, $261,493 Liberia,$51,401 by Denmark.
Muhammad Sohail, a leading analyst and Director Equity Broking, JS Global Capital, said that there was a massive flow of liquidity in the world and the investors from all over the globe were now investing in the emerging markets in the world. Pakistan is one of emerging markets in the region with its GDP growth of 7 percent, which is attracting more foreign investment in equity market. He said that India and Vietnam are the other two emerging markets in this region.