MANILA — ‘Hot money’ or the foreign portfolio investment of the country reached a net flow of $545.08 million in May, according to a Banko Sentral ng Pilipinas (BSP) report yesterday.
This year’s net inflow record is a complete “turnaround,” from $640.84 million recorded in the same period last year, attributed to positive quarterly corporate results.
The central bank also added that the reversal is also because of the strong confidence developed by the investors in the country’s economy.
Investments in peso-dominated government securities reached 20 percent while four percent went to peso-dominated time deposits.
Among the country’s top five investors are the United Kingdom, Singapore, the United States, which remains as the main destination of outflows, and Luxembourg.
The first five months of the year has registered a foreign portfolio investment net outflow of $1.42 billion.
This figure for the first five months also indicates a reversal of the net inflow of $1.58 billion in the same period last year.
The central bank also said that portfolio investments in May went to Philippine Stock Exchange-listed securities, primarily to property companies; banks; holding firms; food, beverage and tobacco firms; and telecommunication firms.
With reports from Philippine Star