Foreign investors offload $197.8mn in equities on Feb 20

Foreign investors remained aggressive sellers at the Pakistan Stock Exchange (PSX) on February 20, 2026, recording a net outflow of $197.81 million, according to data released by Arif Habib Limited.

Total gross buying by foreign investors stood at $6.36 million during the session, while gross selling surged to $204.17 million, resulting in the sharp net sell figure. The data reflects transactions in equity markets and does not include debt instruments.

The bulk of the activity was concentrated in equities, where total foreign sales significantly outweighed purchases. Market participants noted that such a wide gap between buy and sell values typically indicates large block transactions or institutional portfolio rebalancing.

Breakdown of flows showed that foreign corporates accounted for the overwhelming share of selling activity. Overseas Pakistanis recorded comparatively minimal net movement, while foreign individual investors remained largely inactive during the session.

Sector-wise, notable selling was observed in cement stocks, which made up the largest portion of the net outflow. Banking, technology, power, and oil and gas exploration companies (E&P) also saw foreign selling, though on a smaller scale relative to cement. Select sectors such as textile and other industrial plays saw limited net buying, but these inflows were insufficient to offset the broader market exodus.

The $197.81 million net sell figure marks one of the more significant single-day foreign outflows in recent months. In contrast, domestic institutional and individual investors typically step in to absorb foreign selling pressure, helping stabilize overall trading volumes.

While foreign participation at the PSX has remained volatile in recent years, single-day swings of this magnitude often coincide with index rebalancing, profit-taking, or global fund allocation shifts. Market volumes and price action in the coming sessions will indicate whether the move represents a one-off transaction or the beginning of a broader trend in foreign positioning.

The latest data underscores the continued sensitivity of Pakistan’s equity market to offshore flows, with foreign investors maintaining the ability to influence daily liquidity and sentiment despite their reduced overall share in market capitalization compared to historical levels.