A healthy inflow of $41.32 million of foreign investors'' portfolio investment (FIPI) was witnessed at the local equity market during the month of August 2010. According to National Clearing Company of Pakistan Limited (NCCPL) data, the foreign investors remained net buyers of shares throughout the week with a cumulative inflow of $7.958 million during the week ended on Sep 3, 2010.
An inflow of $42.338 million of this mode of investment was witnessed in the country''s shares market during July, 2010. Analysts say that despite prevailing economic situation after the worst ever floods in the country, the foreign investors interest is a positive sign for the Pakistan capital market. "The major reason behind the continuous foreign investors'' interest was the available attractive levels at the local share market", they said.
They said that the local share market is cheapest in the region, "that is why the foreign investors'' continuously taking fresh positions on expectations of healthy returns".
On the other hand, local retail investors either remained on the sidelines or opting to offload their holdings, mainly due to the prevailing economic situation and absence of any leverage product at the capital market.
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