ASEAN KEY DESTINATIONS
Net foreign portfolio investments expand to $545M in May, says Bangko Sentral
Foreign portfolio investments (FPIs) in the Philippines registered a net inflow of $545 million in May, a reversal from a net outflow a year earlier and a 67.69 percent improvement from April, Bangko Sentral ng Pilipinas said Wednesday.
The figure compares with net outflows of $641 million in April 2013 and net inflows of $325 million in April, Bangko Sentral data showed.
This was expected due to the upgrade from Standard & Poor's Ratings Services last month, Bank of the Philippine Islands lead economist Emilio Neri Jr. told GMA News Online.
"The news brought the peso-dollar exchange below the P44 level. It also raised expectations that Fitch and Moody's might follow," he said.
On May 9, a year after it raised Philippine sovereign debt to investment grade, S&P upgraded Philippine foreign currency and peso debts a notch above the coveted credit rating.
Registered foreign portfolio investments reached $1.967 billion in May, slightly lower from $2.007 billion a year earlier and 5 percent higher than $1.872 billion in April.
Outflows registered at $1.422 billion in May, down 46.3 percent from $2.648 billion a year earlier and 8.1 percent lower compared with $1.548 billion in April.
The United Kingdom, Singapore, the United States, Hong Kong, and Luxembourg were the five largest sources of FPIs for the month.
"About 75.2 percent of the investments were in PSE-listed securities (property companies; banks; holding firms; food, beverage and tobacco firms; and telecommunication companies); 20.7 percent in Peso government securities; and the rest (or 4.1 percent) in peso time deposits," Bangko Sentral said.
Also called “hot money,” FPIs are funds invested in stocks, government securities and money market.
Hot money totaled $4.2 billion in net inflows last year, compared with a Bangko Sentral revised forecast of $3.2 billion. – VS, GMA News
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