Foreign portfolio investments hit $963M

PORTFOLIO investment transactions surged in July with net inflows of $963 million, more than three times the $302 million net inflows that was recorded during the same period a year ago.

According to the Bangko Sentral ng Pilipinas (BSP), Foreign Portfolio Investments (FPI) for the month of July yielded net inflows of $963 million, of which $823 million were invested in shares listed at the Philippine Stock Exchange (PSE).

Registered investments of $ 2.2 billion were 77.4 percent and 59.9 percent higher than the level in June 2012 and July 2011, respectively, because of block sales of Ayala Corp., Ayala Land Inc. and Puregold Price Club Inc. shares, as well as Banco de Oro’s stock rights offering.

Outflows were almost the same level as last month at $1.2 billion because of profit taking and continuing concerns on global developments.

The main beneficiaries of investments in PSE- listed shares were: banks ($411 million); property companies ($373 million); holding firms ($322 million); diversified services ($151 million) and telecommunication companies ($145 million).

The United Kingdom, the United States, Singapore, Hong Kong and Luxembourg were the top five investor countries for the month. The US continued to be the main beneficiary of outflows from investments.

Registration of inward foreign investments with the BSP is voluntary. It entitles the investor or his representative to buy foreign exchange from authorized agent banks and/or their subsidiary/affiliate foreign exchange corporations for repatriation of capital and remittance of dividends/profits/earnings that accrue on the registered investment. RAFFY AYENG