As the KSE100 Index regains its 66k level, which it had reached before mid-December last year, 'Foreign Corporates' net buying stands at only $8 million in these three months to date.
In the first month of this year, ‘Foreign Corporates’ were big sellers, managing a net selling of $38 million. Despite this, the strength of the Pakistan Stock Exchange was such that it hardly impacted the index, which remained around 62K.
Since then, over the last two months, foreign corporations have reversed gears and become net buyers, accumulating a total of over $46 million. This surge settled the KSE100 Index above the 66k level again yesterday.
When the PSX started tumbling after KSE100 Index surpassing the 66k level in mid-December last year, 'Foreign Corporates' were net buyers of over $66 million since the start of 2023.
The KSE100 Index began to decline after closing at a historic high of 66,427 on December 12, 2023. Despite this, 'Foreign Corporates' remained net buyers at the PSX, increasing their net buying to over $81 million as the KSE100 declined by 6% in just six trading sessions.
They only turned into net sellers in the PSX after it had declined by 6% from its historic peak.
The KSE100 Index was trading around the 64k level in January this year, having quickly recovered from the 60k break it suffered in December last year.
The massive net sales on account of ‘Foreign Corporates’ came in the fourth week of January this year, with just one week of net selling totaling over $37 million. Nevertheless, even this only put a dent of 2% in the index. Interestingly, most of that net selling was by just one foreign fund that decided to realize the quick gains that the PSX had offered on a platter.
But afterward, since February this year, the net foreign buying has recovered, and ‘Foreign Corporates’ have made a net buying of $46 million at the Pakistan Stock Exchange.
