AHL Research: TUG of war……locals in Foreigners out! Yesterday’s NCCPL data showed a net outflow of $1.7m from foreigners after consecutive inflows for past three sessions after week commenced this month with new Fiscal Year. On the contrary Banks and Commercial Banks jacked up their investments with Net buy of around $3.0m, creating Tug of war situation between foreigners and locals. IMF and Govt. has finally agreed for a $5.3bn bailout under an Extended Fund Facility @ 3.0% which both sides confirmed in yesterday’s press conference. The agreement has some strings attached which are considered to be harsh for the Govt. to implement but are mandatory for seeking approval from IMF Board in September to avail the facility. Market View We predict some outflows could be triggered from foreigners looking at shrinking reserves and currency woes, hence predict market to remain range bound.
Posted on: Fri, 05 Jul 2013 05:01:00 +0000