Foreign portfolio investment transactions result in net inflows in July

August 22, 2019

Bangko Sentral ng Pilipinas (BSP)-registered investments for July amounted to $1.7 billion, reflecting a 19 percent increase from the $1.4 billion figure in June.

About 76.5 percent of investments registered during the month were in PSE-listed securities (pertaining mainly to banks, holding firms, property companies, retail firms, and food, beverage and tobacco companies).

The 23.5 percent balance went to investments in peso government securities. The United Kingdom, Hong Kong, the United States, Norway, and Malaysia and were the top five investor countries for the month, with combined share to total at 75.6 percent.

Outflows for the month ($1.7 billion) were higher compared to levels recorded for June 2019 ($1.4 billion or by 15.1 percent). 

The US received 77.8 percent of total outflows.

Overall transactions for the month yielded net inflows of $15 million, a reversal compared to the net outflows noted in June ($35 million) amid better-than-expected inflation data for the month of June coupled with easing domestic inflation for the second quarter of 2019; and  stronger peso forecast.

Year-on-year, a 75.2 percent increase may also be noted from the $959 million level during the same month last year.

Similarly, gross outflows were higher compared to July ($906 million or by 83.8 percent). 

In contrast,  net inflows for the month were lower compared to the $53 million net inflow for July 2018. DMS