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By Maricel E. Burgonio, Reporter
Net foreign portfolio investments went down in
January to May this year as risk aversion persisted amid the
continuing climb of oil and commodity prices, Bangko Sentral Gov.
Amando Tetangco Jr. said in a statement.
Net foreign portfolio investments weakened to an
outflow of $271.8 million during the period from the recorded inflow
of $1.7 billion last year.
Tetangco said, “the continued spiraling of oil
and other commodity prices, the slowdown in economic growth and
reports of mixed corporate earnings in the first quarter as well as
the weakening of the peso contributed to the negative investor
sentiment during the period.”
Net foreign portfolio investments posted an
outflow of $158 million in May this year, higher than an outflow
$49.9 million in April and lower than the inflows of $581.23 million
in May last year.
“This development was brought about by risk
aversion following the slowdown in the US and other major economies,
the global credit crunch and the record high oil and other commodity
prices which dampened expectations on corporate earnings,” the
governor said.
Total inflows in May reached $700.4 million,
around 91 percent or $634.8 million of which went to shares listed
in the Philippine Stock Exchange.
Investments in peso denominated government
securities and placements in peso time deposits collectively
accounted 9 percent of the balance.
In January to May, total inflows reached $4.660
billion but total outflows reached $4.931 billion, which resulted in
total net foreign portfolio outflow of $271 million.
Investments in PSE listed shares posted $973.8
million, while placements in government securities and peso bank
deposits registered $12 million and $1.2 billion outflows,
respectively.
Inflation rate in May went up to a nine-year
high of 9.6 percent from 8.3 percent in April due to escalating oil
and commodity prices. This pulled down the country’s economic
growth as measured by gross domestic product growth of 5.2 percent
in the first quarter of the year.
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