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Foreign investors continued their cautious stance due to prevailing political and economic situation in the country and withdrew another $29.593 million from the Pakistan''s equity market during the outgoing week ended July 25, 2008.
The cumulative net outflow of the current month from July 1 to July 25 stood at $72.768 million while the cumulative figures of current calendar year (January 1, 2008 to July 18, 2008) were recorded at negative 314.204 million.
According to data released by the National Clearing Company of Pakistan (NCCPL) a net inflow was witnessed only on Monday as $404,757 million came in the country''s equity market on the first day of the week, however, an outflow was seen during the remaining four trading sessions.
The data shows that an outflow of over $5.897 million was witnessed on Tuesday, over $9.902 million on Wednesday, $2.990 million on Thursday and over $11.207 million on Friday.
The prevailing geo-political situation and weakening economic indicators are the main reasons, which forced the foreign investors to offload their holdings, a leading analyst said, adding that various measures taken by the SECP and KSE board to support the local share market failed to revive the investor confidence during the outgoing week.

Copyright Business Recorder, 2008

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