Outflow of hot money loses steam, foreigners withdrew $21.5 mln only on Thursday

March 27, 2020 (MLLN): The outflow of hot money from Government’s debt securities has lost its steam on Thursday i.e. March 26, 2020, as only $21.5 million foreign currency flight has been recorded from local debt market against outflows of $75.89 million in the previous session.

According to the daily SCRA data published by SBP, the local market witnessed total net outflow of $25.7 million on the said day after including net withdrawal $4.19 million foreign investment from local equities.

This month so far, international investors detached $1.579 billion (net) from T-bills, whereas, $79.49 and $45.397 million (net) have been withdrawn from equities and PIBs respectively, bringing the total net outflows to arrive at $1.7 billion.

Cumulatively, from July to date, foreigners have poured $3.43 billion in T-bills, out of which $1.9 billion has been withdrawn, indicating $1.5 billion still parked in T-bills.

With regards to PIBs, the total foreign inflow from July 2019 to date has been recorded at $60.5 million, out of which $45.42 million has been extracted so far.

This suggests that since July, cumulatively foreigners invested $3.49 million in Government Securities (T-bills and PIBs) out of which $1.95 million has been withdrawn, bringing the total net inflows to settle at $1.534 million.

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