Net ‘hot money’ flows positive in July – BSP
FOREIGN portfolio investments turned positive in July after two months of net outflows, data released by the Bangko Sentral ng Pilipinas (BSP) showed on Thursday.
The $53.29-million in net “hot money” flows for the month was a reversal from June’s net outflow of $516.12 million but was lower than the yearago net inflow of $206.47 million.
“This may be attributed to investors’ anticipation of good second quarter corporate earnings results,” the Bangko Sentral said in a statement.
Registered foreign portfolio investments amounted to $959.44 million in July, 5.3 percent higher than the $910.78 million recorded a month earlier but down 33.1 percent from $1.434 billion a year ago.
The bulk of the funds was invested in Philippine Stock Exchange (PSE)-listed securities — mainly banks; property developers; holding firms; food, beverage and tobacco firms; and small and medium enterprises.
Peso government securities accounted for the rest.
The United States, United Kingdom, Hong Kong, Singapore and Luxembourg were the top five investor countries with a combined 84.8 percent of the total.
July’s outflows of $906.15 million reflected a decrease of 36.5 percent from the $1.426 billion in June, the central bank said. Outflows also dropped from $1.227 billion a year ago.
The United States remained the main destination of repatriated funds, accounting for 78.7 percent.
Taking preliminary results for the first three days of August into account, year-to-date hot money flows were positive with a net inflow of $455.74 million.
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