Hot money swings back to net outflow – BSP

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March net outflow $22M vs Feb net inflow $1.2B

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FOREIGN portfolio investments, or hot money, reverted to a net outflow of $22 million in March after a net inflow of $1.2 billion in February, with most of the funds leaving the country bound for the US, according to data released by the central bank on Thursday.

The Bangko Sentral ng Pilipinas (BSP) said the net outflow in March this year, however, was much lower than the net outflow of $92.86 million recorded in March 2014.

March outflows reached $2.10 billion, compared with $2.22 billion a year earlier, while inflows receded to $2.08 billion from the previous year’s $2.13 billion.

According to the BSP, about 81.8 percent of the investments flowed into Philippine Stock Exchange (PSE)-listed securities such as holding firms; property companies; banks, food, beverage and tobacco companies; and telecommunications firms.

The rest of the hot money investment went to peso-denominated government securities (GS), and unit investment trust funds (UITFs), the BSP said.

“Transactions in PSE-listed securities and UITFs yielded net inflows of $228 million and $12 million, respectively; transactions in Peso GS resulted in net outflows of $261 million,” it said.

The United States, the United Kingdom, Singapore, Luxembourg, and Hong Kong were the top five investor countries for the month, with a combined share of 82.1 percent, while the US continued to be the main destination of outflows, receiving 78.5 percent of the total, it added.

Last year, foreign portfolio investments registered a net outflow of $310.21 million.

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