Offshore investors withdraw $3.805 million from equity market

KARACHI (December 21 2008): The outflow of foreign portfolio investment continued as the offshore investors withdrew $3.805 million from the country's equity market during the outgoing week ended December 18, 2008.

According to National Clearing Company of Pakistan (NCCPL), a cumulative outflow of $12.364 million of foreign portfolio investment was recorded on the first 20 days of the current month while the cumulative figure of this mode of investment was seen at negative $367.876 million in the current year from January 1, 2008 to December 18, 2008.

Analysts said that foreign investors took cautious stance and opted to offload their holdings due to weakening economic indicators and geo-political situation. The imposition of floor at the Karachi Stock Exchange was another reason, which hurt investor confidence, they added.

The week started on a negative note as an outflow of $880,393 was witnessed on Monday while the foreign investors withdrew $1,183,738 on Tuesday. This trend continued as an outflow of $1,245,849 was recorded on Wednesday. On Thursday, the situation slightly improved with a fresh inflow of $98,968, however, the foreign investors withdrew another $594,276 on Friday.