$4.222 million withdrawn from equity market

KARACHI (November 16 2008): A massive outflow of $4.222 million from portfolio investment was witnessed from the country's equity market during the week ended on November 15, 2008. "The prevailing uncertainty over the 'floor' on share prices and weakening economic indicators forced the foreign investors to offload their holdings on available prices", analysts said.

Most of the selling was done through off-market trading as the investors were not able to get exit through the normal trading due to dull trading activity at the share market, Ahmed Nabeel, Chief Operating Officer (COO) of Javed Omer Vohra & Company, said.

The off-market trading is being done at 22 percent to 23 percent discounts, he said, and added that the government did not take any supportive measures for the stock exchange. The government has not taken any step to materialise the announced Rs 50 billion market bailout plan, he added.

According to National Clearing Company of Pakistan data, the cumulative outflow of portfolio investment increased to $4.257 million in the first half of the current month. The cumulative figure of this mode of investment was recorded at negative $344.123 million in the period from January 1, 2008 to November 14, 2008.

The week started on a negative note and an outflow of $2,917,838 was witnessed on the first day of the week. The situation slightly improved and an inflow of $16,325 was recorded on Tuesday. The foreign investors once again opted to offload their holdings and an outflow of $459,384 was witnessed on Wednesday. As much as $40,546 came in the country's equity market in this account on Thursday while the foreign investors withdrew $902,563 on Friday.