Foreign investments post net outflow in May
MANILA -- Bangko Sentral ng Pilipinasregistered foreign portfolio investment transactions for the month of May yielded net outflows of USD750 million, resulting from gross outflows of USD2 billion and gross inflows of USD1.2 billion, the BSP disclosed in a statement on Friday.
It said that by instrument, all investment instruments resulted in net outflows: listed securities at the Philippines Stock
Exchange (PSE-listed securities - USD508 million); peso government securities (Peso GS - USD241 million); and other peso debt instruments and other portfolio instruments (each at less than USD1 million).
Gross inflows rose 25 percent from the USD990 million figure last month. This may be attributed to investor reaction to lower inflation last April amid the holding of the country’s mid-term elections and the BSP’s announcement to cut the reserve requirements ratio of universal and commercial banks.
About 81.5 percent of investments registered during the month were in PSElisted securities (pertaining mainly to holding firms, property companies, banks, food, beverage and tobacco companies, and transportation services firms); while the 18.5 percent balance went to Peso GS.
The United Kingdom, the United States (US), Malaysia, Singapore, and Luxembourg were the top five investor-countries for the month, with combined shares to total 76.7 percent.
Gross outflows for May (USD2 billion) were higher by 54.2 percent vis-a-vis the April level (USD1.3 billion) as investors reacted to the renewed trade tensions between the US and China. The US continued to be the main destination of outflows, receiving 81.5 percent of total remittances.
Year on year, a 2.1 percent increase in gross inflows was noted from the USD1.2 billion inflows recorded during the same month a year ago; gross outflows also increased by 40.1 percent from its USD1.4 billion level in May 2018. (PR)