Foreign investors succumb to bearish sentiments after six weeks

March 14, 2019 (MLN): Foreign investors in the domestic capital markets found themselves under the influence of bearish sentiments during the week ended March 8, 2019.

After marking a winning streak that lasted for six weeks, the investors observed a net sale of securities via Specially Convertible Rupee Accounts (SCRA) that is recorded at a worth of Rs.620 million.

However, if we look at the trend set in prior two weeks, there are no surprises since the previous week had recorded a rather steep nose dive in net purchase of securities, from Rs.1 billion to Rs.87 million. This indicated quite an obvious spread of negative pressure.

The overseas investors sold securities worth Rs.6.3 billion during the week and purchased securities worth Rs.5.7 billion.

Compared to previous week, the fall in purchase of securities was much significant (down by Rs.800 million) than the fall in sale which only dropped by Rs.78 million only.

Apart from this, the inflow of remittance this week was Rs.1.9 billion while the outflow was Rs.3.2 billion.

Coupled with Rs.15 million dividend inflow and Rs.4 million in tax payments, this brought the overall closing balance of SCRA during the week at Rs.27.5 billion, down from Rs.28.2 billion recorded in previous week.

Copyright Mettis Link News