Net selling in Capital markets by foreign investors fell by 15% last week: SBP

According to data released by the State Bank of Pakistan on Friday, foreign investors were seen to be net sellers in the capital markets for the week ending July 27, 2018, but with a marked reduction in net selling over the last two weeks.

Even though foreign investors continue to be net sellers this week, the net selling witnessed a decline from last week as the net sale of securities has been reported at Rs 670 million against a net selling of Rs 770 million recorded during the week before, a decrease of about 15%. Net selling for the week before that, ending on July 13, 2018 was reported at Rs 2.478 billion.

Overall sale of securities by foreign investors decreased by 24% over the previous week after being recorded at Rs 5.547 Billion while the purchase of securities by foreign investors also decreased by 25.4% after being recorded at Rs 4.876 billion compared to Rs 6.540 billion in the week before.

Even though foreign investors remain net sellers of securities in the capital markets, the decline in net selling reveals a somewhat optimistic view on the part of foreign investors in our capital market.

Total Inflows by foreign investors in our capital markets decreased by Rs 2.475 billion over the week to reach Rs 7.736 Billion, against Rs 10.211 Billion last week, while total outflows also decreased by Rs 2.752 million to reach Rs 7.445 billion from Rs 10.197 billion in the prior week.

Remittances coming into the country fell by about 35.2% during the week ending July 27, 2018 as inward remittances were recorded at Rs 1.69 Billion over last week’s Rs 2.61 Billion. Outward remittances on the other hand witnessed a decrease of 29.4% after being recorded at Rs 2.565 billion compared to Rs 3.634 billion sent out from the country in the week before.

Closing Balance in the Special Convertible Rupee Accounts (SCRA) increased by Rs 290 million and was reported at Rs 27.021 billion against Rs 26.731 billion last week.