Last Friday, we mentioned that foreign selling appeared to be over, and today’s substantial net buying by 'foreign corporates' confirms this shift. Foreign corporates made net purchases of $3.5 million today. Between September 1st and October 4th, they offloaded a massive net amount of $72.7 million in PSX-listed securities. To put this into perspective, from the start of the year until August 31st, foreign corporates had made net purchases of $100 million in Pakistan's listed equities. However, due to the heavy selling in September, their net purchases now stand at just 30% of their total purchases for the year.
Over the last 30 trading sessions, foreign corporates cumulative net selling stands at USD 66.87 million.
Mutual funds continued their massive buying with net purchases of USD 9.05 million today. This trend is driven by investors shifting from money market funds to equities in response to a declining interest rate environment. In the last 30 trading sessions, mutual funds have accumulated a net buying of USD 69.62 million. Until the end of August this year, mutual funds were net sellers at the PSX with a net outflow of around $19 million. As of today, they have now become net buyers of $53 million year-to-date.
Meanwhile, insurance companies sold a significant USD 10.96 million at the PSX, continuing their opportunistic stance as the market reaches record highs. Their cumulative net selling over the last 30 sessions now stands at USD 29.66 million
