A fresh inflow of over $0.56 million of foreign investors' portfolio investment (FIPI) in the country's equity market was observed in October, 2008, out of which $0.349 million came in the last week of the month. The market had been witnessing a declining trend in foreign investment during the last few months, as an outflow of $6.010 million was seen only in September 2008.
According to National Clearing Company of Pakistan Limited (NCCPL) data, the net figure of this mode of investment was recorded at negative $336.098 million from January 01, 2008 to October 31, 2008. "The fresh inflow is a positive sign for local share market and it shows foreign investors' interest to invest here on expectations of healthy returns", analysts said.
The foreign investors opted to offload their holdings on their concerns over the political uncertainty and weakening economic indicators of the country. Other world markets also remained under heavy selling pressure during this period.
The Karachi share market had witnessed heavy declining trend during last few months as KSE-100 index declined by 42 percent, or 6493.46 points on October 31, 2008, from its peak level of 15,676.34 points on April 18, 2008 to 9,182.46 points.
The foreign investors once again started their investment at the local share market mainly due to recent very attractive levels and expectations of good returns, analysts said. The analysts were expecting more foreign investment to come in the local equity market.
The week started with positive sign as a fresh inflow of $22,120 was recorded on Monday. This trend continued as another 144,981 came in the country on Tuesday. A net inflow of $147,511 was witnessed on Wednesday while $34,856 came on Thursday. However, a meagre outflow of $330 was recorded on Friday.
Comments
Comments are closed.