Portfolio investment up 235.9pc

[LahoreEstate]

KARACHI - Regaining the confidence of foreign investors on Pakistan’s economy, the inflow of portfolio investment from the developed countries at local equity market has recorded a massive growth of 235.9 per cent during the first quarter (July-August) of current financial year, 2009-10.
Pakistan’s local bourses attracted $230.9 million from advanced economies of Western Europe, European Union, North America and US during July-September FY10.
However, such inflows during the same period of last fiscal year witnessed a sharp decline and fell to $169.9 million.
This trend shows that the confidence of international investors about Pakistan’s economy are reviving day-by-day, despite facing bad law and order situation in the country.
Stock market players attribute this development with the improvement in the macroeconomic indicators, strong liquidity position and witnessing a reversal trend in flight of capital from the country.
In addition to that, the domestic financial market is performing well in terms of offering better profits and dividends to local and foreign companies (shareholders) on their reported earnings and profitability among emerging markets of Asia, Europe, Middle East, Africa and Latin America.
It is important to mention here that portfolio investment inflows remained cheering during the analytical period of current fiscal year on account of enhanced security conditions in the country and improving dollar inflows from advanced economies of Western Europe, America, UK and global factors such as financial recovery in western states. Moreover, foreign players remained optimistic for the local bourses as figure shows that local markets were ranked higher among regional pairs in terms of returns and shares values.
However, investment inflows from UAE to Pakistan were down to a great extent during July-September this year. The total portfolio investment received from developed countries increased by 222.1 per cent and stood at 208.04 million dollars during July-September of FY10 against -170.7 million dollars in the similar quarter of last year.
Portfolio investment from developed region dramatically inched up to 230.9 million dollars during July-September FY10 from -169.9 million dollars during the same period of FY09, showing 235.9 per cent progress during the period under review.
From Western Europe, the total portfolio investment amounted to $71.5 million, showing growth of 234.7 per cent during the said period against $-53.1 million in the July-September FY09. From the United States, Pakistan received significant 162 million dollars worth portfolio investment as against $-110.2 million of last quarter, showing noteworthy surge of 247 per cent

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