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By Chino S. Leyco, Reporter
FOREIGN interest in local stocks and other
peso-denominated financial assets subsided last month on fears of a
US recession and soaring oil prices, the Bangko Sentral ng Pilipinas
(BSP) said Thursday.
In a statement, the BSP said foreign portfolio
investments registered a net outflow of $237 million in January, a
turnaround from the net inflow of $252.5 million last year.
Last month’s outflows rose from last
December’s net outflow of $207 million.
“This developed due to lingering fears of a US
recession and soaring oil prices which overshadowed the marked
improvement in the country’s economic fundamentals,” the BSP
said, citing the Philippines’ 31-year record economic growth,
lower-than-expected inflation, and surge in its dollar surplus.
The reductions in key interest rates by the US
Federal Reserve and BSP may have only partly tempered the net
outflow, local monetary officials said.
Total foreign inflows reached $1.2 billion last
month, up 32 percent from December.
Around 52 percent, or $597.2 million of the
total investments went to shares listed in the Philippine Stock
Exchange (PSE), over half or $313.4 million of which went to
telecommunications and property firms.
Investments in peso-denominated government
securities, primarily fixed-rate Treasury notes, accounted for 47
percent at $546.7 million, while investments in peso time deposits
accounted for the remaining 1 percent.
Singapore, the United Kingdom, and the United
States were the top countries of origin of the investment funds
during the period.
Capital repatriations reached almost $1.4
billion, 27 percent higher than that of the previous month. The
outflows arose from divestments from PSE-listed shares of $527.2
million, and government securities of $439.6 million, and
withdrawals of peso deposits 2 of $420.2 million.
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