Foreign investors dump most stocks in three years last week

September 21, 2024 (MLN): Foreign investors dumped a significant $23.2 million of Pakistani equities last week, their biggest selling on a net basis in almost three years, according to National Clearing Company of Pakistan (NCCPL) data.

The selling was likely due to FTSE rebalancing, which demoted Pakistan from Secondary Emerging to Frontier Market in July.

The third weekly net selling in a row came despite the benchmark KSE100 Index notching up three consecutive weekly gains in USD terms.

The most substantial sales activity this week was in fertilizer stocks, as foreigners offloaded $9.83m worth of stocks, followed by oil and gas exploration companies with net sales of $6.14m, and commercial banks at $2.78m.

The leading sellers were Foreign Corporates as they offloaded $24.6m. While foreign individuals and overseas Pakistanis bought $1.41m on net basis.

Despite the recent heavy selling, foreign investors have been buying Pakistani stocks aggressively this year, with net investment of $65.4m so far this year as the country continues to experience growing confidence amidst improved economic conditions and a stable exchange rate.

The stock index is up a significant 19,623 points or 31.4% so far this year. Despite the rally, valuation metrics suggest stocks are still cheap compared to historic levels and its peers.

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