October 19, 2018 (MLN): According to the official data on Specially Convertible Rupee Accounts (SCRA) released by the State Bank of Pakistan (SBP), foreign investors remained net sellers at the capital markets during the week ended October 12, 2018.
The net sale of securities during the week under review increased by Rs.1.82 billion over the prior week, rising from a net selling figure of Rs.1.2 billion to Rs.3.02 billion, as per the data.
The total sale of securities by the foreign investors during the said week escalated from Rs.6.2 billion to Rs.11.3 billion, demonstrating an increase of 82%.
Harmoniously, total purchase of securities by foreign investors increased by 64% as it augmented from Rs.5 billion in the preceding week to Rs.8.2 billion this week.
Special Convertible Rupee Accounts cater to the needs of non-resident investors, who wish to trade freely in the shares quoted on the Stock Exchange of Pakistan.
Operation of SCRA accounts is up to an extent of remittances received from abroad or by transfer from a Foreign Currency Account maintained by non-resident investors in Pakistan.
The balance available therein can be used for purchase of any shares quoted on the country’s secondary markets i.e. Pakistan Stock Exchange. The disinvestment proceeds against the sale of previously purchased shares through SCRA can be credited in this account, in addition to dividend income against the shares held by non-resident investors.
The funds available in such accounts can be transferred outside Pakistan or credited to a foreign currency account of non-resident investor maintained in Pakistan at any time without prior approvals of the State Bank of Pakistan.
The flow of remittances into the SCRA stands at Rs.1.9 billion whereas the remittance flowing out are estimated at Rs.5.2 billion. As compared to the week ended October 05th, 2018, the inflowing remittances have dropped by Rs.300 million while those leaving the SCRA have increased by Rs.1.6 billion.
Income from dividends credited into the SCRA account amount to Rs.586 million, compared to Rs.510 million a week earlier.
Closing position of SCRA accounts is reported at Rs.26.2 billion, slightly up from the Rs.25.9 billion reported a week before.
Copyright Mettis Link News
23752
