September 13, 2018 (MLN): According to the data released by the State Bank of Pakistan (SBP) on Specially Convertible Rupee Accounts (SCRA) today, foreign investors remained net sellers at the capital markets during the week ending September 7th 2018.
During the week under review, the net sale of securities grew by around 25% on a week-on-week basis, as it has been recorded at Rs.1.6 billion against a net selling worth Rs.1.2 billion reported during the week before
On the whole, the sale of securities by foreign investors increased by 10.3% or Rs.1 billion over the previous week after being recorded at Rs.10.7 billion compared to Rs.9.7 billion a week before, while the purchase of securities by foreign investors also increased by 8.3%, or Rs.680 million after being recorded at Rs.9 billion compared to Rs.8.5 billion during the week before.
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.
According to the latest statement issued by SBP, remittances coming into the SCRA account stood at Rs.2.2 billion, while those leaving the account were recorded at Rs.5.5 billion. Compared to the prior week ending on August 31, 2018, remittances coming into the SCRA accounts by September 7th fell by Rs.655 million from the week before while those leaving the SCRA accounts, fell by Rs.1.8 billion.
Income from dividends credited into the SCRA account stood at Rs.415 million, compared to Rs.510 million a week earlier.
Closing position of SCRA accounts were reported at Rs.25.8 billion, down from the Rs.27.3 billion reported a week before.
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