Why Stock Markets Are So Sensexy? Published by GulteDesk January 29, 2021
Barring recent slump, the stock markets are under a record rally with sensex touching 50,000 mark last week. It’s rather surprising that when the real economy is under recession, the stock markets have been registering unprecedented gains indicating an eminent disconnect.
The sensex moved from 26,000 in March 2020 to the 50,000 level on January 21st, 2021 registering over 90 percent increase. The Sensex jumped from 40,000 to 50,000 in mere 100 sessions indicating the strength of the Bull Run. A host of global and local factors contributed to the bullish character of Indian stock markets.
The stock markets have been primarily driven by sharp increases in the flow of Foreign Portfolio Investment (FPI). FPIs have injected more than $20 billion to purchase stocks in Indian markets since October 2020. Since the onset of the pandemic FPIs have been investing around $4 billion a month in Indian markets. Th
Foreign Investors Repatriated $892 Million Out of Pakistan
Foreign investors have repatriated approximately $892 million abroad on account of profit and dividend during the first half of this fiscal year (FY21), the latest data by the State Bank of Pakistan (SBP).
This is an increase of $56 million over the same period last year. As the effects of lockdown restrictions slowly dissipate and economic activities improve, the repatriation of profit and dividend by foreign investors is also gradually increasing. From July to December 2020 (first half of FY21), it rose by 7 percent.
The higher outflow of profit and dividends also reflects that Pakistan’s economy is performing well and can produce better margins for foreign investors.
On a monthly basis, The Nigerian Stock Exchange polls trading figures from market operators on their Domestic and Foreign Portfolio Investment (FPI)4 flows. As at 31 December 2020, total transactions at the nation’s bourse decreased by 15.28% from N317.81billion (about $813.87million) in November 20205 to N269.24billion (about $687.06million) in December 20206. The performance of the current month when compared to the performance in December 2019 (N127.94billion) revealed that total transactions increased by 110.44%. In December 2020, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 48% as shown in figure 1 below.
A further analysis of the total transactions executed between the current and prior month (November 2020) revealed that total domestic transactions decreased by 20.43% from N250.50billion in November to N199.32billion in December 2020. However, total foreign transactions increased by 3.88% fro
Read more about FPIs remain net buyers with 18,456 crore investment in Jan so far on Business Standard. Overseas investors pumped in Rs 24,469 crore into equities but pulled out Rs 6,013 crore from the bonds market between January 1-22
The VFD Group is a proprietary investment company with subsidiaries in banking, asset management, real estate, currency exchange and mortgage financing. In this interview, Chief Executive Officer of Everdon BDC, the currency exchange subsidiary of the Group, Theresa Ezeh speaks on the firms outlook for the foreign exchange market, Foreign Portfolio Investment (FPI) inflows and recent measures to increase inflow of diaspora remittances into the country.
By Babajide Komolafe
Last year the naira depreciated by 28.3 percent in the parallel market and by 5.1 percent in the I&E window. Some analysts have predicted further depreciation this year. What is your outlook in this regard?