'Hot money' inflows up 40% to $243.1M in April

Foreign portfolio investments to the Philippines rose 40 percent to $243.10 million in April from, $173.21 million in the previous month, despite the market jitters that usually accompany pre-election seasons. The Bangko Sentral ng Pilipinas on Thursday said reports solid earnings reports by the country's top corporations as well as positive economic developments lifted investor sentiment in April. On a gross basis, registered foreign portfolio investments in April reached $931.76 million. BSP Gov. Amado M. Tetangco Jr. said equity investments went mainly to telecommunication and property firms. Stock investments, which reached $748.19 million, made up 80 percent of the "hot money" that flowed into the country during the month. Meanwhile, placements in peso-denominated government securities, primarily Fixed Rate Treasury Notes or FXTNs, accounted for the remaining 20 percent amounting to $183.57 million. Tetangco said that based on BSP data, these inflows more than offset capital repatriations/outflows of $688.66 million in April, broken down into several portions. The outflow of portfolio investments were traced to divestments from stocks reaching $348.88 million, or 51 percent of total outflows. The rest were due to divestment of government securities amounting to S$68.46 million and withdrawals of money market placements that amounted to $0.08 million, and peso deposits of $271.24 million. - GMANews.TV