Today as PSX came under selling pressure, and the KSE100 Index broke the 70k level, declining more than 500 points intra-day, The 'Foreign Corporates were waiting in the wings to capture the opportunity.
They made a net buying of over $22.98 million - biggest amount in several years. By day end the KSE100 had almost fully recovered, restoring the 70k level decisively.
Today’s investment by foreign corporates is higher than their entire net buying in this current month.
Even overseas Pakistanis were net buyers today in their own insignificant way.
In ‘local investors’ category (LIPI), everyone sold except mutual funds. Fund’s net buying was not significant, but the positive figure is nonetheless important.
In local investors, ‘Individuals’ sold massively, with net selling of $19.3 million, they were followed by ‘Companies’ with $3.2 million net selling.
It is important to note that not all investors in the ’Foreign Corporates’ are foreigners or ‘foreign funds. Some of the so called ‘foreign corporates’ are companies registered overseas and owned by Pakistanis. These are generally holding companies.
My sense is that in the large number of trades, the net selling of ‘individuals’ and the net buying of ‘foreign corporates’ were block deals.
Thus is the modus operandi.
See KSE100 Index recent period Chart.
