Foreign Buying Returns to PSX After 23-Month Gap, Boosting Investor Confidence
- Foreign investors recorded net buying at the PSX for the first time in almost two years.
- Overseas inflows reached $34.4 million during July 2026.
- Banking and exploration companies attracted the largest share of foreign investment.
- Analysts see the turnaround as a positive sign for Pakistan’s financial markets.
Foreign investors have returned to the Pakistan Stock Exchange (PSX) as net buyers for the first time in 23 months, providing a major confidence boost to Pakistan’s capital market at the beginning of the new financial year.
Fresh investment data shows overseas investors injected approximately $34.4 million into the stock market during July 2026, ending nearly two years of sustained foreign selling. The development marks a notable improvement in international sentiment towards Pakistan’s equity market.
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The latest figures represent a dramatic reversal from June, when foreign investors pulled around $180 million out of Pakistani equities. The shift suggests overseas funds have started rebuilding their positions after months of continuous outflows.
The banking sector emerged as the biggest beneficiary of foreign investment during July, receiving nearly $13.8 million in fresh inflows. Energy and exploration companies also attracted significant interest, with international investors purchasing shares worth approximately $6.7 million.
Not all sectors shared the positive momentum, however. Cement companies experienced net foreign selling, making the sector the largest contributor to overseas outflows during the month.
Market observers believe the return of foreign buying reflects growing confidence in Pakistan’s financial outlook and could encourage additional international participation if current economic and market conditions remain favourable. The renewed interest from overseas investors is also being viewed as an encouraging start to the country’s new fiscal year.
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