A massive outflow of $25.058 million of foreign portfolio investment from the country's equity market was witnessed during the week ended on January 10, 2009. According to National Clearing Company of Pakistan Limited (NCCPL) data, the cumulative outflow of this mode of investment had increased to $49.557 million from January 1 to date.
"The foreign portfolio investment has been witnessing a declining trend since the beginning of 2008, as a cumulative figure of this mode of investment has recorded negative $432.458 million from January 1, 2008 to January 9, 2009", an analyst said.
The outflow of foreign investment in the country's equity market started mainly due to political uncertainty and geo political situation. The NCCPL data shows that the week started with a negative trend a net outflow of $4,359,388 was witnessed on Monday. This trend continued as the offshore investors withdrew another $1,166,368 on Tuesday. The market remained closed on Wednesday and Thursday. A massive outflow of this mode of investment was witnessed on Friday as the foreign investors withdrew $19,532,490 on the last day of the week.