November 16, 2018 (MLN): Foreign net selling via Specially Convertible Rupee Accounts (SCRA) has thumped to a 3 month low, as investors await a positive turnout on the IMF and Chinese aid front.
Where on one hand, these investors have limited the selling of securities in hopes of more favorable situations in future, on the other hand, due to lack of incentives at present, the purchase of securities has also minimized.
Although overseas investors’ continued their selling spree for yet another week during the one that ended on November 9, 2018, the net sales compressed by a whopping 55% for the second week in a row. The net sales during the week before had declined by 57%.
Official data released by the State Bank of Pakistan (SBP), on SCRA, shows that net sales during the last week were recorded at Rs.509 million as compared to Rs.1 billion net sales recorded the week earlier.
Following a breakdown, it can be seen that the total sale of securities dropped by nearly 39%, from Rs.11.2 billion to Rs.6.8 billion.
However, the total purchase of securities reduced as well, sliding from a purchase worth Rs.10 billion to that worth Rs.6.4 billion, marking a reduction of almost 37%.
On the other hand, the inflow of remittances in these accounts has shrunk by over 23%, being recorded at Rs.2.7 billion. Providentially, the flow of outward remittances has toned down as well, being marked from Rs.5.7 billion to Rs.3.5 billion during the week.
Meanwhile, income from dividends has reduced by over half and an amount of Rs.269 million has been credited into SCRA, on that account.
The closing position of SCRA accounts is reported at Rs.27.7 billion, down from the Rs.27.7 billion reported a week earlier.
