Foreign net selling via SCRA up by 6.7 percent: SBP

November 2, 2018 (MLN): The week ended October 26, 2018, observed a selling spree among foreign investors, as the State Bank of Pakistan (SBP)’s data on Specially Convertible Rupee Accounts (SCRA) shows foreign net selling worth Rs.2.7 billion, during the week under review.

As per the official numbers released, net selling via SCRA has increased by 6.7% over the prior week, (ended October 19, 2018) when net selling logged in at Rs.2.5 billion.

The total sale of securities for the period has been uplifted by 9.9% or Rs.820 million, as it is marked at Rs.9 billion for the week under review, versus a sale of Rs.8.2 billion recorded for the prior week.

Similarly, the total purchase of securities via SCRA has grown by almost Rs.650 million or 11.4%, as it came up from Rs.5.7 billion during previous week to Rs.6.3 billion during the reviewed 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.1.6 billion, while the outward remittances are recorded at Rs.4 billion.

As compared to the prior week, the inflowing remittances have jumped by Rs.216 million while outward remittances have dropped by Rs.590 million.

Income from dividends credited into the SCRA account amount to Rs.1.7 billion, compared to Rs.720 million a week earlier.

On the other hand, closing position of SCRA accounts is reported at Rs.28.2 billion, up from the Rs.26.2 billion reported a week before.

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