Philippine foreign portfolio investments at $32.2m in March
The Philippines' foreign portfolio investments posted a net inflow of $32.2 million in March as monetary easing measures helped boost investor confidence in the country, the central bank said on Friday.
March's figures indicate a reversal of the $198.7 million of net outflow posted in February. Philippine central bank governor Amando M. Tetangco, Jr. attributed the net inflow to the Philippine monetary officials' decision in March to further reduce key policy rates by 25 basis points which encouraged investor confidence.
"Gains in Wall Street following the US Government's plan to buy up to $1 trillion in toxic assets from banks to spur economic recovery and favorable economic reports contributed significantly to the positive outcome during the month," Tetangco added.
Registered foreign portfolio investments in March totaled $559.3 million, 54 percent of which went to listed shares. The rest were invested in peso-denominated government securities and money market instruments.
Total outflows reached $527.2 million in March owing to withdrawals of investments in listed shares and bank deposits; and immediate remittance of cash dividends, profits and earnings led to outflows.
For the first quarter of the year, transactions resulted in a net inflow of $54.8 million compared with the $129.8 million net outflow posted in the same period last year. Investments in listed shares, government securities and money market instruments contributed to the net inflow.
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