Share this story!            

Foreign investors back in action at Karachi stock market

By Tanveer Ahmed

KARACHI: Foreign investors invested heavily in local stock market during the last three days shrugging off all the uncertainties of current political situation and security concerns.

So far, during the current week, foreign investors made net buying worth $8.558 million and on Wednesday, they were net buyer of $4.443 million.

The entry of foreign investor in the stock in a big number also propelled benchmark KSE-100 index to 9155 points level on Wednesday gaining 216 points over the last year.

Capital market witnessed declining trends in the previous week when its index was going down rapidly because of deteriorating law and order situation and in the month of October that saw unprecedented terrorism incidents, index was two percent down over the last month.

The country was rocked with a deadly bomb blast claiming 105 lives at Peshawar.

However, since the start of current week, index is posting gains, which is attributed to foreign investors exposure in the market despite the bad security situation and political crisis over NRO that jolted the political landscape of the country.

Analysts commenting on the presence of foreign investors in the market said that though security situation is still worse and political temperature is heating up, foreign investors are making quick gains by investing in the stock market that offers quite attractive levels.

Foreign investors, they added, are having abundance capital and are in search of making quick gains and fortunately Pakistani market is giving them this opportunity because of the discounted levels compared to regional markets.

If during last week, they pulled out their investment from the stock market that was in line the regional trends when other markets also saw outflow of portfolio investment and partly it is because of last week’s terrible events in the country.

Pakistan stock market underwent through major technical corrections in recent days as KSE-100 index that was expected to breach 10,000 points level last month sharply came down and fell below 9000 points level.

On Wednesday, it again started its march to achieve the mark of 10,000 points level and breached 9000 points level – thanks to buying of foreign funds.

Home | Business

Share this story!