November 11, 2001	Sunday	Shaba’an 24, 1422

KARACHI, Nov 10: Foreign investors indulged in massive selling during the month of September as the terrorist attack on the World Trade Center and Pentagon has jolted the international stock markets including the Karachi Stock Exchange (KSE).

According to official figures released by the KSE, foreign funds and individuals operating in the local market, sold 22.542m shares worth Rs467m and purchased only 3.678m shares costing Rs48.809m during the month of September.

“The market witnessed a virtual outflow of the foreign money after the attacks and it looks most of the investors were out to liquidate long positions in the high profile shares at a throwaway prices”, stock brokers said.

The KSE 100-share index fell to a record low of 1,133 points from the August peak index level of 1,509 points followed by the uncertainty that gripped the market.

“The US attack on Afghanistan further accelerated the pace of foreign selling but unlike September there were local buyers at the dips led by the financial institutions, which were directed to boost the market after injecting money at the falling prices”, stock analysts said.

While the institutional traders are still active after having pushed the index to 1,406 last month, there was no evidence of strong foreign buying even after good dividend by Hubco and PTCL at 22 and 24 per cent respectively, they added.

Market sources said calculated on daily basis in normal conditions, foreign buying hardly amounts to about Rs2 to 3 billion each month but its psychological push is that strong that its presence lure back the most shaky investor to the rings.

Whether or not a loud whispering about the US aid package to compensate for the Afghan war losses and positive outcome of Musharraf-Bush meeting could lead to revival of foreign buying will be known by the next week, they added.

Bulk of the selling was confined to leading shares of the MNCs including Hubco and among the local PTCL and some others but there were not many as general investors were equally scared and were not inclined to take a stake even at an attractively lower levels, they added.