Foreigners hold 20pc of free-float on KSE

Foreign investment in the country’s capital market is generally dismissed as of little consequence and an ex-chairman of the Karachi Stock Exchange commented a little while ago that the market would be better off without it.

Such disillusionment stems from the mood swings of a foreign portfolio manager: “The outflow of funds is as quick as its inflow,” says a market guru. But the influence of the off-shore equity investment in the local bourses is growing.Admitting that the foreign funds hold just about 4 per cent of total market capitalization and the share of overseas funds in average daily volume is just about 3.5 per cent, analysts at the JS Capital Market have calculated that approximately 17 per cent of the share represents foreign investment in the float adjusted capitalization.

No new tax on stock brokers: CBR chief

Central Board of Revenue (CBR) Chairman Abdullah Yousuf has said no new tax will be levied in any form on stock brokers, nor there is any proposal under consideration in this regard. Talking to a select group of media men after having a detailed meeting with heads and members of Alternate Dispute Resolution Committees (ADRs) at Directorate General of Income Tax Training here Saturday night, he said there was no need to levy another tax on stock brokers as they were already paying withholding tax and capital value tax.