Portfolio investments bounce back in Jan-Sept

MANILA, Philippines – Portfolio investments continued to bounce back to a net inflow of $229.1 million in the first nine months of the year from a net outflow of $889.1 million in the same period last year amid the global economic slowdown, the Bangko Sentral ng Pilipinas (BSP) reported yesterday.

Data released by the BSP showed that foreign portfolio investment inflows amounted to $4.709 billion while outflows reached $4.48 billion during the nine-month period.

The inflows in the first nine months of the year were 33.5 percent lower than last year’s $7.085 billion while outflows were also 40.9 percent lower than a year-ago level of $7.97 billion.

Top five investor countries that accounted for 81 percent of the total inflows included the United States, United Kingdom, Japan, Singapore, and Luxemburg.

The BSP said investor sentiment in the Philippines remained relatively upbeat owing to the better-than-expected economic performance during the first half of the year supported by robust remittances, easing inflation and interest rates as well as sound macroeconomic policies.

For the month of September alone, portfolio investments registered a net inflow of $46.95 million, a complete reversal of the net outflow of $443.1 million in the same month last year.

The central bank said net outflows were recorded in the first three weeks of last month due to a lack of positive leads.

The trend, the BSP said, shifted toward the end of the month as foreign investors became net buyers buoyed by a special block sale of shares in a local property firm.

Statistics showed foreign portfolio investment inflows increased by 32.5 percent to $685.3 million in September from $517.2 million in the same month last year. Bulk of the inflows or about 82 percent were invested at the Philippine Stock Exchange while 18 percent were parked in peso-denominated government securities and peso time deposits. –Lawrence Agcaoili (The Philippine Star)