Today, PSX continued its bullish trend, with the KSE100 Index gaining close to 1000 points intraday, nearing the 71k level before closing at 71,433, adding 523 points (+0.74%).
As anticipated, local investors—both those adhering to weighted strategies (i.e., mutual funds) and those seeking to capitalize on the momentum—will likely be drawn into the market whirlwind fueled by persistent foreign investor buying.
Today, activity from 'Foreign Corporates' was subdued, with only $1.25 million in net buying, a stark contrast to the whopping over $28 million in net buying witnessed over the last two days.
Conversely, local investors demonstrated significant activity today.
Mutual funds, adhering to their fund structures, were net buyers of $2.4 million. Notably, this one-day net buying by mutual funds exceeds their entire year-to-date net buying as of yesterday by over 70%.
Individuals' net buying today slightly surpassed that of Mutual Funds, totaling $2.67 million.
Individuals are generally attracted to the market based on momentum, rather than fundamentals. It's noteworthy that 'Individuals' were net sellers in the market as of yesterday, with a cumulative year-to-date net selling of over $2 million. However, based on persistent foreign buying, they have reversed their course.
In this regard, both mutual funds and 'Individuals' are sort of 'captive' investors.
Insurance companies show independence. On that see next post.
