Foreign investors return, net buyers

February 1, 2026 (MLN): After several weeks of sustained selling, foreign investors returned to the Pakistan Stock Exchange as net buyers in the latest trading week.

The Foreign Institutional Portfolio Investors (FIPI) segment posted a net inflow of Rs4.97bn (USD 17.76m), reversed the net outflows of Rs5.89bn seen in the previous week.

The turnaround was driven by both foreign corporates and foreign individuals, who collectively shifted from net sellers to net buyers.

Foreign corporates recorded a net purchase of Rs1.03bn, while foreign individuals contributed a modest net inflow of Rs0.5m.

Overseas Pakistanis also remained active, with net inflows of Rs3.94bn, adding further support to the market.

The FIPI resurgence shows renewed confidence amid stabilizing macroeconomic indicators and attractive valuations, following weeks of profit-taking and geopolitical uncertainty.

The net buying by foreign investors is expected to provide short-term support to market liquidity and investor sentiment.

This shift comes after consecutive weeks of foreign selling, where FIPI net outflows had totaled over Rs5.8bn, highlighting a potential turning point in foreign participation at the bourse.

The return of foreign buying could stabilize key indices and attract further interest from international investors, potentially signaling the start of a more sustained recovery in foreign portfolio flows if macro conditions remain supportive.

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