Foreign investors extract another $37.2 million on Friday

April 14, 2020 (MLN): Risk-averse international investors continued to divert from government’s denominated debt securities as another outflow of $37.2 million has been witnessed on Friday i.e. April 10, 2020.

Thus, the net outflow for the day has been logged at $41.32 million, as foreign investors withdrew $5.48 million from local equities, while inflows stood at $1.39 million only.

According to the SCRA data released by SBP, from April 1^st to date, the country did not witness any inflow of hot money in government denominated securities as the lower interest rate is diverting foreign investors towards dollarization. During the month country witnessed an outflow of $358.6 million in T-bills.

Cumulatively, during fiscal year to date, foreigners have extracted around $2.42 billion from the injection of $3.43 billion, indicating that only $1 billion investment is left in T-bills.

With regards to foreign investment in long term instruments particularly PIBs, foreigners detached $45.4 million so far, against the inflows of $60.5 million.

Country-wise, UK investors made the largest withdrawal from July FY20 to date, as they detached $2 billion so far from T-bills followed by US investors with an outflow of $369.5 million.

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