KARACHI - The portfolio investment in the equity markets has been wiped out as the foreign investors have gradually pulled out their stakes from Pakistani stock markets amid growing political uncertainty that gripped the country over the last six months and deteriorating law and order situation of the country. The data issued by State Bank of Pakistan on Thursday revealed that the net flow of the portfolio investment remains negative by US$180 million from July to August 20, 2008, which reflects elimination of foreign investment from the stock markets. The data of portfolio investment reflects net outflow of US$374mn and inflow of US$193mn during the above-mentioned period. According to the data, net flow of portfolio investment during the twenty days of current month turned negative by US$30mn and outflow of US$114mn.While net inflow recorded at US$83mn. A major outflow of portfolio investment had been recorded from the USA, United Kingdom, Switzerland, Singapore and Hong Kong. According to the State Bank of Pakistan (SBP) data, the USA investors withdrew $217mn, UK$64mn, Switzerland $38mn, Hong Kong $27mn and Singapore $11mn during July to Augusts 20, 2008. Commenting on the continued outflow in the equity markets, brokers and analysts said that stock markets of the country have been witnessing highly volatile and bearish trading sessions over the last four months on the back of prolong political uncertainty and economic crisis, which have not only shattered the confidence of local investors but forced the foreign investors to make a swift exit from the Pakistani equity markets. Brokers said after the resignation of President Musharraf on Monday, they started to hope that the dust on political front would be settled down but disputes over the reinstatement of deposed judges came as an another crushing blow for the stock market, as the market had taken a strong pull back following the resignation of President by gaining more than 600 points in two days, lost it in next three days as soon as the issue took its toll and voices of rifts echoed in the coalition partners. "Total volumes of the stock market are still showing gloomy picture, which shows the interest of investor and foreign investors are always attracted by the high volumes," analysts said. Analysts said that a new wave of suicide bombing in the country had further crushed the confidence of foreign investors. They said that over the last four months, foreign investor remained jittery and gradually started to disappear from the share markets of the country, as a result of political chaos. They maintained that unless the political confrontation would not be settled down the confidence of the foreign investors couldn't be restored because their first priority is confidence level. "If the political conditions remain volatile the investment would continue to wobble and may witness further down grading in the investment," analysts added. It may be noted here that the 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. Despite the unprecedented gain of 961 points in the KSE-100 index in a single day on 24 June 2008. The Pakistani share markets was remained in the grip of massive outflow of port folio investment, as the foreign investors had ejected US$313.8 million in 23 days of the month, resulting cumulative net flow turned negative by US$93 million in the said period.