KARACHI - Portfolio investment in the Pakistani stock markets witnessed further erosion as the foreign investors remained on the sideline and further ejected their investment from the equity markets on the backdrop of economic crisis and burgeoning political confrontation. In the first six days of June, cumulative outflow reached to $123 million, which reflects elimination of foreign investment from the stock markets. During the period under review the share markets witnessed cumulative inflow of US$96 million and net flow turned negative by US$27.4 million. On June, 6, 2008 the State Bank of Pakistan has reported that the net flow of the portfolio investment has landed into negative by US$112 million dollars from July07 to date, which reflects elimination of foreign investment from the stock markets. "On the context of current political uncertainty and economic crisis the figures of outflow are unmatchable able with our expectations as we were assuming 400 to 500 million dollars outflow against the current position of outflow," brokers said. "Pakistani stock markets are very resilient and promptly observe all negative issues but the concerning point is that if the negative issues linger on it affects the sentiments of both foreign and local investors," brokers added. Brokers apprehended that if any untoward incident took place in the lawyers long march rally, the stock markets would react negatively. However, there is no concern with the rally of lawyers if ended peacefully, brokers added. A major outflow of portfolio investment had been recorded from the USA, United Kingdom, Switzerland, Singapore, Hong Kong, B.V Island and Australia. The data of portfolio investment reflects net outflow of US$4.4 billion and inflow of US$4.2 billion during July07 to date. According to the State Bank of Pakistan (SBP) data, the UK investors withdrew $1.4 billion, USA$2.2 billion, Singapore$64 million, Hong Kong $353 million, B.V Island $51 million and Australia $68 during the period under review. It may be noted here that on May, 20, 2008 the net flow of the portfolio investment stood negative by US$50 million. In the period of last month foreign investors had ejected $309.5 million dollars from equity markets. It is pertinent to mention here that in 2006-07 the portfolio investment at stock market hit the record high level of around one billion dollars, but from the outset of this financial year the foreign investment at stock market appears in the reverse gear, showing outflow of huge investment. Foreign investors have been gradually pulling out their stake from Pakistani stock markets from July 2007. In less than two months, from July to August 17, 2007, the stock market reflected a net outflow of 156 million dollars worth foreign investment. On January 03, 2008 the net flow at stock market was recorded at $37 million dollars after taking dip of $30 million. On January 10, 2008 the State Bank of Pakistan has reported that the net flow of the portfolio investment has landed into negative by $0.35 million dollar that indicates the elimination of foreign investment from the equity market. During the month of January 2008 the portfolio investment was recorded negative by around US$90 million dollars. Following the assassination of Benazir Bhutto, on December 27, 2007 the net flow of portfolio investment had turned negative and reached to around US$260 million.