FOREIGN PORTFOLIO investments — referred to as “hot money” for the ease with which they enter and exit local markets — grew more than five times in the eight months to August, final data the central bank released yesterday showed.
Specifically, hot money posted a net inflow of $960.27 million as of Aug. 31, compared to just $182.18 million in the same eight months last year. Fund inflows in that period grew 43% to $5.881 billion from $4.024 billion, outstripping the 25% increase in outflows to $4.921 billion from $3.842 billion in the same comparative periods.
Placements in shares listed at the Philippine Stock Exchange rose 32.26% to $4.1 billion from the $3.1 billion recorded in the same eight months in 2009. Those funds were invested in listed banks (24%), property companies (20%), telecommunication firms (19%), holding firms (17%) and utility firms (11%), the statement read further.
The United States, the United Kingdom, Singapore, Malaysia and Luxemborg were the top five sources of these investments, accounting for 83% of the total.
For August alone, net inflow totaled $225.06 million, more than 15 times the $14 million recorded the previous month and a reversal of the $82.91 million net outflow seen in August 2009. Fund inflows for that month alone doubled to $787.9 million from $384.96 million the previous year, while outflows grew by a slower 20% to $562.84 million from $467.87 million.
Preliminary data also showed hot money starting September with a net inflow.
Specifically, Sept. 1-4 saw a $34.32-million net inflow, a reversal of the $9.69 million net outflow seen in the same period last year. Inflows grew 35.8% to $114.18 million, while outflows dropped 14.8% to $79.87 million. –Businessworld
Invoke Article 33 of the ILO constitution
against the military junta in Myanmar
to carry out the 2021 ILO Commission of Inquiry recommendations
against serious violations of Forced Labour and Freedom of Association protocols.
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