Hot money flow turns around in Nov

MANILA, Philippines - Foreign portfolio investments reversed to an inflow in November although the figure was still lower than what was recorded in the same month last year.

Bangko Sentral ng Pilipinas data showed the country raked in $368.92 million in hot money inflows last month, 62 percent below the $980.94 million seen in November last year.

However, the current figure is a turnaround from a net outflow of $179.9 million in October this year.

“This is a major turnaround after two consecutive months of net outflows as investments in PSE (Philippine Stock Exchange)-listed shares rose due to an initial public offering by a retail company, additional listing of shares of a gaming corporation, and a top-up offering a holding corporation’s shares,” the central bank pointed out.

Gross inflows plunged 40 percent to $1.79 billion in November from $3 billion in the same month last year, while gross outflows also declined 30 percent to $1.42 billion from $2.02 billion.

The lower inflows were still owed to the US Federal Reserve’s reduction in its asset purchases even if the stimulus package ended October this year.

Bulk or 78.7 percent of the investments last month went to stock exchange-listed securities mainly holding firms, banks, property companies, telcos, casinos and gaming firms. Another 19.3 percent went to peso-denominated government securities, while two percent were put into peso debt instruments, the BSP said.

The top investor countries during the period were the United Kingdom, the United States, Singapore, Luxembourg, and Malaysia. The United States, meanwhile, was the main destination of outflows in November.