Foreign investors sink more money into PHL stocks, govt securities, says BSP

Foreign portfolio investments (FPI) in the Philippines yielded a net inflow for the second consecutive month in February as investors placed more money in the stock market and government securities, the Bangko Sentral ng Pilipinas (BSP) reported on Thursday.

 

There was a net inflow of $1.19 billion in February, reversing the net outflow of $354.86 million a year earlier, according to central bank data.

 

In the first two months of the year, however, the net inflow expanded to $1.781 billion compared with a net outflow of $2.199 billion in the same period last year.

 

The hefty outflows registered last year were an offshoot of the Federal Reserves' move to wind down the US quantitative easing program, also called the bond buying activity to help stimulate the economy.

 

Also called “hot money,” portfolio investments are funds placed in stocks, government securities and money market. 

 

Transactions in Philippine Stock Exchange-listed securities yielded net inflows of $637 million, while the peso government securities also posted net inflows of $479 million.

 

"About 66.4 percent of investments registered in February were in PSE-listed securities (mainly holding firms, property companies, banks, and food, beverage and tobacco companies, and utilities firms)...

 

"The rest of the investments (30.6 percent) were in peso government securities and peso time deposits (3.0 percent)," the central bank said.

 

Singapore, the United Kingdom, the United States, Luxembourg, and Hong Kong were the top five sources of portfolio investments, with a combined share of 82.1 percent against the total.

 

The US was the main destination of outflows, receiving 81.9 percent of $1.359 billion in registered repatriations last month. – Danessa O. Rivera/VS, GMA News