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.