‘Hot money’ inflows reach $4.5B


Foreign portfolio investments to the Philippines, also known as “hot money,” recorded a net inflow of $4.5 billion from January to November, surpassing the $4.4 billion target of the Bangko Sentral ng Pilipinas (BSP) for full year 2013.

Data from the BSP showed that hot money recorded a year-to-date inflow of $27.2 billion, while outflows reached $22.6 billion.

In November alone, foreign portfolio investments recorded an inflow of $2.9 billion, as hot money flowing into Philippine Stocks Exchange (PSE)-listed shares increased by 84 percent.

Year-on-year, registered investments also rose by 49.5 percent from $2 billion in 2012 “inspite of fears over the economic impact of Super Typhoon Yolanda and renewed concerns on the possible scaling down of the quantitative easing program in the United States,” the central bank stated.

The BSP added that bargain hunting and investor optimism was fueled by the third quarter gross domestic product of 7 percent that brought the year-to-date average growth to 7.4 percent, and well above the full-year target of 6 percent to 7 percent.

Investments in November were consisted of 80.5 percent PSE-listed securities, 15.8 percent peso government securities (GS), and 3.7 percent peso time deposits.

For PSE-listed securities, the main beneficiaries were: retail companies, holding firms, casinos and gaming companies, property firms, and banks.

Meanwhile, the BSP said that outflows for the month rose to $2 billion from $1.5 billion in October.

Transactions yielded net inflows of $981 million, slightly higher than the $969 million recorded a month ago, and a little lower than the $1 billion level in the previous year.

Transactions in PSE-listed securities, peso GS and peso time deposits yielded net inflows of $788 million, $82 million, and $110 million, respectively.

The United Kingdom, the United States, Singapore, Hong Kong and the Netherlands were the top five investor countries for the month with combined share to total of 74.3 percent.

The US continued to be the main beneficiary of outflows from investments, receiving 81.8 percent of total.


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  1. PNoy is one of the President which is badly needed by the Philippines in the years to come. PNoy’s promises of good governnance, transparency, honesty, foriegn policies, etc.to his “Bosses” the poor Filipinos are being positively true and working. PNoy is only human and not a super human to act the resolution of every problem/s by nature or man made and that Filipinos in the opposition must stop immediately in negative critizism but instead unite and support and help this divided Philippines. If I can vote 4 million times during election for PNoy to be President for very long time, I will heartily do it even if I also have a Labor Protest for the Vietnam Supreme People’s Court for 1-year and 7-months todate without impartial Resolution. DFA Honorable Secretary Albert del Rosario has not help me as OFW despite my very appeal and very loud cry for imediate help for me to continue working with the company. This Labor Case is 4-years and 3-months todate and I hope that PNoy will make a rapid action and re-instate me to my work through the Vietnam government the shortest time possible. Please reply.