Foreign portfolio up at $2.9bn

KSE during CY10: foreigners hold 32pc of free float

Offshorers invest $522 million

Ahmed Siddique

KARACHI: Total Investment value of foreign portfolio significantly hiked by 53.2 per cent or $1.02 billion to $2.93 billion at the end of year 2010 against $1.92 billion witnessed on year-end 2009.

Rise in portfolio investment in CY10 driven by fresh investment of $522 million and value of equity appreciation of around $490 million. In terms of rupee, special convertible rupee account (SCRA) showed closing market value of shares and securities at Rs 252 billion against Rs161 billion observed on same period last year, thus reflecting 56.4 per cent jump in portfolio value during the period.
As per “The Financial Daily” analyst, foreign investors own $2.93 billion which is 32 per cent of the free float market capitalization on above date. The main reasons for surge in foreign holding value were significant hike in equity market as it surged by 28.1 per cent or 2,636 points to close at 12,022-level at the end of December 31, 2010 comparing with the index stood at 9,387 points at the end of the year 2009.

On the other hand in CY10, foreign investors cumulatively bought shares worth $1.20 billion and sold $682 million, resulting in net buying of $522 million during the outgoing year.
Interestingly, none of the local categories invested on net basis in equity market during the period, as biggest yearly selling were witnessed from Companies which sold $4.69 billion worth of shares in the local bourse against buying of $4.52 billion, thus turning the net selling worth of $165 million.
Furthermore, mutual funds, banks local individuals, NBFC and other organizations remained on the selling side with shares worth $130 million, $95 million, $77 million, $45 million and $10 million respectively.

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