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KARACHI (September 01 2008): A massive outflow of portfolio investment from the country's equity market continued as the foreign investors withdrew over $12.771 million during the outgoing week while the cumulative outflow of $50 million was recorded in the current month of August 2008.

"Foreign selling has been at heart of recent fall in the local equities," Farhan Rizvi, an analyst at JS Global Capital said, adding that while the quantum is not huge, low volumes and prevailing political and economic uncertainties have magnified its impact. The offshore investors' concerns over the prevailing political situation in the country and weakening economic indicators forced them to offload their holdings.

The cumulative outflow of foreign portfolio investment from Pakistan's equity market increased to $354.672 million during the current year from January 1, 2008 to date. The outflow of foreign investment started from the beginning of the week as the offshore investors withdrew $5.476 million from the equity market on Monday. This trend continued and foreign investors withdrew another $2.689 million on Tuesday, $4.111 million on Wednesday and $3.987 million on Thursday.

However, an inflow of foreign investment in the equity market was witnessed on Friday as over $3.493 million were invested by foreign investors on attractive levels on the last trading day of the week.

Source: The News International - No. 1 English Newspaper from Pakistan - Monday, September 01, 2008

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