Net foreign portfolio investments worth almost more than $400 million entered the Philippines in May this year, the Bangko Sentral ng Pilipinas (BSP) reported on Friday, June 25.

Central bank data showed the foreign portfolio investments for May 2021 yielded net inflows of $417 million resulting from the $1.5 billion gross inflows and $1.0 billion gross outflows for the month. This was a reversal of net outflows of $374 million recorded in April 2021.

“The $1.5-billion registered investments for May reflected a 124-percent (or by $807-million) increase compared to the $651 million recorded in April 2021,” said the BSP.

Of the total investments, 67.9 percent were in securities listed at the Philippine Stock Exchange (investments mainly to utility companies, property firms, banks, holding firms and food, beverage and tobacco companies) while the remaining 32.1 percent went to investments in government securities.

The United Kingdom, Singapore, the United States, Luxembourg and Norway were the top five investor countries for the month, with combined share to total of 88 percent.

Gross outflows for the month of $1.04 billion were higher by 1.6 percent or by $17 million than the level recorded for April 2021 of $1.03 billion. The US was destination of 69.5 percent of total outflows.

Transactions for BSP-registered foreign portfolio investments from January to the first week of June 2021 yielded net inflows of $230 million.

This was lower than the $3.08 billion net outflows noted for the same period in 2020 amid the impact of the COVID-19 pandemic on the global economy and financial system.

Sources:
https://business.inquirer.net/325741/hot-money-pile-in-ph-turns-positive-in-may-as-stocks-draw-foreign-buyers
https://www.manilatimes.net/2021/06/26/business/top-business/414-million-hot-money-enters-ph/1804700