The Special Convertible Rupee Accounts (SCRAs), which dipped to $2.8 million on August 22 after bouncing back to $19.4 million on July 18, managed to reach $9.5 million on August 31. Earlier, SCRAs, which is an indicator reflecting foreigners'' perception about portfolio investment in Pakistan, had dipped to about $5 million on July 24.
Of the 14 active players during FY07 so far, 12 had withdrawn amounts in varying magnitudes ranging between $0.03 million (Qatar) and $11.7 million (Switzerland). Interestingly, however, Singapore inflows under SCRAs surged to over $41 million on August 31 with $22.6 million flowing in during August alone. Nearly $18.5 million had flowed in from Singapore during July. The only other positive inflow during FY07 so far was from Liberia amounting to paltry $0.06 million.
Among other active players, USA withdrew some $11 million followed Hong Kong, UAE, BV Island and UK withdrawing $2.3 million, $1.9 million, $1.8 million, and $1.6 million, respectively. Minor amounts were also withdrawn by Bahrain, Guernsey, Kuwait, Luxembourg, and Saudi Arabia.
The present improvement, therefore, owes entirely to Singapore because cumulative withdrawals of Switzerland, USA and Hong Kong impacting overall balance negatively together amounted to over $25 million (cf. foregoing paragraph) during the year so far.
The generally representative KSE-100 Index, in the meanwhile, stood at 10,064 on August 31 compared with 10,497 on July 31. Profit-taking, rumours about political uncertainty, likely dissolution of a provincial assembly and fears of retaliatory activities against recent arrests of some Pakistanis linked to alleged terrorist plot involving British planes were reported to be the major factors behind the decline.
The SBP General Index of Share Prices, a composite index covering all ordinary shares, which stood at 444 on end July also declined to 425 at the end of August. Aggregate market capitalisation, which surged to Rs 2,905 billion on July 31, ended up lower at Rs 2,787 billion on August 31.
According to yet another SBP update (September 02 evening), the gradual surge in SCRAs witnessed in the last week of August was continuing and SCRAs which stood at $9.5 million at the end of August rose to $11.6 million on September 1 with major inflow of $4.9 million coming from USA coupled with a minor flow of $0.2 million from Singapore. The overall impact of these positive inflows was, however, reduced to just $2 million because of outflows effected by Switzerland ($2.5 million) and BV Island ($0.3 million) besides minor withdrawals by Hong Kong and UK.
(Report by research.dept@aaj.tv)