Foreign Portfolio Investments Hit $599.7 Million Outflow, BSP

According to Bangko Sentral ng Pilipinas (BSP), foreign portfolio investments reached a huge amount of $599.7 million outflow for 2015. Way too far from what the BSP has projected for 2015, which was $200 million. This was also much bigger than the 2014 outflow of $310.21 million.

A net outflow of $170.5 million for December alone was recorded compared to the $68.8 million for the month of November.

In a statement, the BSP said, “While net cumulative inflows reached $1.8 billion during the first two months of 2015, these inflows were fully offset by net inflows in the succeeding months (except for the small net inflow of $28 million in October due mainly to profit taking in the local stock market, as well as concerns on the then imminent interest rates lift-off in the United States and slowdown of the Chinese economy.”

The total inflows in 2015 dropped to $19.93 billion against the $21.80 billion, 8.6 percent lower in 2014.

77.5 percent of registered foreign portfolio investments went to Philippine Stock Exchange listed securities and 21.7 percent went to peso government securities. A $650 million net outflow resulted from PSE listed securities while a $40 million net outflow was recorded for peso debt instruments.

On the other hand, inflows of $52 million went to time deposits, $25 million to government securities and $13 million to unit investment trust funds.

The BSP said that, “The United Kingdom, the United States, Singapore, Luxembourg and Hong Kong were the top five investor countries during the year, with a combined share totalling 79.6 percent. The US continued to be the main destination of outflows, receiving 79.7 percent of the total.”

Sources: Manila Bulletin, Manila Times