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FOREIGN interest in peso-denominated assets such as shares of
Philippine listed firms and government debt papers returned in
February, the Bangko Sentral ng Pilipinas (BSP), citing assurance
given by the double-digit growth in the country’s exports last
December, the lower-than-expected budget deficit, and robust
corporate earnings.
In a statement, BSP Gov. Amando M. Tetangco Jr.
said net foreign portfolio investments reached $370.9 million last
month, reversing the net outflow seen last January. Despite the
renewed interest, the two-month net inflows of $134 million was way
below the $664.8 million seen in the same period last year.
“[The] continued negative reports on the US
economy, soaring oil prices which triggered fears of rising
inflation, and domestic political noise” may have limited the
inflows, Tetangco said.
He also blamed the drop on the smaller number of
initial public offerings and follow-on offerings in the local stock
market.
Of the $1.2 billion in hot money that came in
last month, 53 percent was invested in stocks of listed local
companies, while 22 percent and 25 percent were placed in government
debt papers and peso time deposits, respectively.
Capital repatriations amounted to $814.1 million
on divestments from listed shares at 48 percent, followed by
divestments from government securities at 23 percent and withdrawals
of peso deposits at 29 percent.
-- Chino S. Leyco
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