Who cares if it is a contrarian signal, as long as prices rise! [Indicator Tracker 1102]

An independent exercise, not a statement by the video creator or verification of every claim in the video.

Why can foreign ownership rise despite net selling?

Assume a hypothetical market where foreign holdings have a market value of 39 and other holdings 61. Foreign investors sell a net 2 to other investors at unchanged prices, leaving holdings worth 37 and 63. If only the foreign-held basket then rises 20% while the rest is unchanged, foreign holdings become 44.4 and the market total 107.4, giving a share of about 41.34%. The share exceeds its initial 39% despite net selling. Ownership share divides the market value held by total market value; interpreting it as a trading direction or investor skill requires separate checks of net trades, price effects and portfolio composition.

Check for yourself

1. Do the holding values and net trades cover the same date and universe of securities?
2. How much do price moves, share issuance and changes in included securities affect the ownership share?

Limits of application

This hypothetical calculation does not reproduce the foreign ownership share or returns quoted in the session. It simplifies the post-sale portfolios into nonoverlapping baskets with gains only in the foreign-held basket, excluding share-count changes, external cash flows, taxes and trading costs. Foreign investors do not form a single uniform strategy group.