Net hot money more than doubled to $2.2B as of May 17 y-o-y — Bangko Sentral data

Foreign portfolio investments in the Philippines registered at $2.2 billion net as of May 17, from $910 million a year earlier, latest Bangko Sentral ng Pilipinas data showed.

 

Inflows reached $11.846 billion, up 81 percent from $6.5 billion in the same comparable period, while outflows hit $9.688 billion, up 72 percent from $5.63 billion.

 

In the week ending May 17, foreign portfolio investments registered a net inflow of $62.85 million which reversed a $7.53 million net outflow a week earlier.

 

Also called hot money because of the ease they are placed in and taken out of local markets, foreign portfolio investments funds that are usually invested in stocks, government securities and money market instruments.

 

The Philippines remains among the emerging markets that are attractive to foreign funds seeking higher yields than the US and Europe which were affected by the global economic slowdown.

 

The country’s attractiveness to foreign funds solidified after the two investment grade ratings from international credit watchers Fitch Ratings on March 27 and Standard & Poor’s on May 2.

 

Net foreign portfolio investments totaled $3.9 billion in 2012, with inflows hitting $18.482 billion and outflows reaching $14.571 billion.

 

This year, Bangko Sentral projected net foreign portfolio investments of $3 billion. — VS, GMA News