Massive outflow of foreign investment witnessed

[LRE]

Massive outflow of foreign investment witnessed
AHMED MALIK
KARACHI (August 23 2008): A massive outflow of over 25.035 million dollars of portfolio investment from the country's equity market was witnessed during the outgoing week ended August 22, 2008. The recent outflow of foreign investors portfolio investment from the country's equity market was mainly due to the offshore investors' concerns over the prevailing political uncertainty and depreciating local currency value, analysts said.

The cumulative outflow of foreign investment in the local share market has increased to 37.954 million dollars in the current month from August 01, 2008 to August 22, 2008 while the offshore investors have withdrawn over 347.907 million dollars in the current year from January 01, 2008 to August 22, 2008. According to data, released by National Clearing Company of Pakistan Limited (NCCPL), the net outflow of 2,627,552 dollars of portfolio investment was witnessed on Monday while the foreign investors withdrew another 2,655,687 dollars on Tuesday.

On Wednesday, an inflow of 1,251,427 dollars foreign investment was recorded, however, a massive outflow was witnessed on the remaining two days of the week, as the foreign investors withdrew 8,267,451 dollars on Thursday and 12,735,787 dollars on Friday.

Copyright Business Recorder, 2008