The outflow of foreign portfolio investment from the country's equity market continued as the offshore investors withdrew another $3.305 million during the week ended on September 5, 2008.
According to the data released by National Clearing Company of Pakistan Limited (NCCPL), the cumulative outflow of this mode of investment from the local equity market increased to $353.830 million during the current calendar year, from January 1, 2008 to date.
Analysts believe that the prevailing uncertainty on political front is the main reason, which forces the foreign investors to offload their holdings. Weakening economic indicators, depreciating local currency value and downgrading country's outlook also created negative sentiments, they said.
Although the start of the week was positive as an inflow of over $1.552 million was witnessed on Monday as the foreign investors took fresh positions on some select stocks. However, this trend could not continue and the foreign investors withdrew over $0.332 million on Tuesday.
A meagre inflow of $0.144 million of portfolio investment was recorded on Wednesday. However, the foreign investors remained cautious and withdrew $1.422 million on Thursday. This trend continued and an outflow of over $3.247 million was witnessed on Friday.