Foreign investors opted to offload their holdings and withdrew $3.681 million from the Karachi share market during the outgoing week that ended on September 25, 2008. According to National Clearing Company of Pakistan Limited (NCCPL) data, the cumulative figure of this mode of investment has reached negative $351.231 million during the current year from January 1 to September 25, 2008.
"The main cause of continuous outflow of foreign portfolio investment was prevailing political uncertainty, deteriorating economic indicators and depreciating PKR value, which forced the offshore investors to offload their holdings," analysts said.
The foreign investors adopted cautious stance from the start of the week and remained net seller of share worth $27,514 on Monday. Panic selling by foreign investors was witnessed on Tuesday $4,414,678 were withdrawn from the share market on the second day of the week.
On Wednesday, the situation slightly improved and a fresh inflow of portfolio investment of $386,022 was witnessed at the share market. This trend continued and another net inflow of $375,129 was witnessed on Thursday. The market remained closed on Friday due to Jumma-tul-Widda.