PH ATTRACTED $109.6M IN NET NOV PORTFOLIO INVESTMENTS

More short-term investments flowed into the Philippines than out, with the net inflow pegged at $109.6 million in November, reversing net outflows in the previous two months, according to the Bangko Sentral ng Pilipinas (BSP).

In November, there was an $1.28-billion inflow of BSP-registered foreign portfolio investments, surpassing a $1.17-billion outflow.

Gross inflows in November meant an 35-percent month-on-month surge from $950 million in October.

BSP data show that 94 percent of the November inflows went to publicly listed holding firms as well as listed companies in information technology, food, beverage and tobacco, banking and property.

The remainder was invested in peso-denominated government securities.

Close to three-quarters or 73 percent of net inflows came from the United Kingdom, United States, Luxembourg, Hong Kong and Singapore. On the other hand, gross outflows in November were slightly higher than the $1.171 billion recorded in October. Of the total, close to two-thirds or 63 percent went to the United States.

Compared to the same month of 2020, there was a 12.3-percent decrease in gross outflows from $1.34 billion.

For the 11 months from January to November, results showed a net outflow of $570 million, which was 85 percent less than the $3.7-billion net outflow recorded in the same period of 2020.

Michael Ricarfort, chief economist at Rizal Commercial Banking Corp., said in a note that one factor that may encourage more inflows include the approval of the Corporate Recovery and Tax Incentives for Enterprises Law.