Once again, today, foreign corporates (primarily foreign funds) were the major sellers at the PSX today, with a net sale of Rs 11.8 million. Local insurance companies, however, stepped in with a net buy of approximately $10.5 million. This marks the second consecutive day of net buying by insurance companies, following their $10 million net purchase yesterday—a notable shift after their substantial net sales of $28 million over the past three weeks.
Mutual funds, which have been strong buyers recently, saw more muted activity today, with a net buy of just $2.2 million.
Since foreign funds began offloading PSX stocks from September 1st, local mutual funds have made cumulative net purchases totaling $83 million. Had it not been for the mutual funds' re-entry into the market, the PSX would have likely seen a more significant decline. Mutual funds are forced to enter the market as their investors are shifting from money market funds to equities. Conversely, if foreign funds hadn't been selling, the low liquidity in the market—reduced further by buybacks—could have driven the rally even higher.
See the note of foreign selling at PSX.
