‘Hot money’ flows turn positive in March

FOREIGN portfolio investments turned positive in March, recording the biggest net inflow in three years based on Bangko Sentral ng Pilipinas (BSP) data released on Thursday.

The $1.132 billion net “hot money” inflow — a reversal from February’s net outflow of $545.14 million — came as investments in peso debt instruments and Philippine Stock Exchange (PSE)-listed securities more than offset outflows.

The March result was the largest net inflow since the $1.19 billion in February

2015. It was also a turnaround from the year-earlier net outflow of $459.86 million.

Registered foreign portfolio investments amounted to $2.468 billion for the month, more than double the $1.028 billion in February and 79.7 percent up from a year ago.

The bulk or 50.6 percent was invested in peso debt instruments while 40.9 percent went to PSE-listed securities — mainly holding firms; property developers; banks; food, beverage and tobacco firms; and utility companies.

Peso government securities accounted for the rest.

The Netherlands, the United Kingdom, the United States, Norway and Hong Kong, were the top five investor countries with a combined 85.2 percent of the total.

March’s outflows of $1.336 billion reflected increases of 15.1 percent and 27.1 percent, respectively, compared to the previous month ($1.573 billion) and a year ago ($1.833 billion).

The United States remained the main destination of repatriated funds, accounting for 85.9 percent.

Year-to-date hot money flows were positive with a net inflow of $749.43 million.