Stocks Observer. com

By Salman Siddiqui KARACHI: The foreign capital flight continues although the Morgan Stanley Capital International Barra (MSCI Barra) announced last month to consider reinstatement of Pakistan on its Emerging Index and the domestic political stability was also gaining momentum. The MSCI Barra is a world-leading provider of equity, fixed-income and hedge fund indices. International investors highly consider its advisory for making investment and divestment in about 23 developed and 27 emerging markets across the world. The foreigners’ actions at the local bourses show that their speed of exit was increasing with the rise in activities in the local capital markets. Last week, when the Karachi bourse made a record buying-rally and registered a four years highest gain of over 10 per cent in a week, the foreigners made a massive outflow of $31.3 million. “This net selling was the highest since seven weeks and equivalent to cumulative net selling of past five weeks,” observed Atif Zafar at J...