95% of $591M flowed into stock market
The Bangko Sentral ng Pilipinas (BSP) on Friday reported that net ‘hot’ money inflow surged to a 14-month high of $591.62 million
The previous record high was set on November 2013 at $980.94 million. The January 2015 inflow surpassed last year’s high of $545 million in May. (Please see graph)
Some $561 million (P25 billion) or 95 percent of the total were invested in companies listed on the stock exchange, fueling the current bull run. Investments went to top-up placements of JG Summit Holdings Inc., Ayala Land Inc. and Metropolitan Bank and Trust Co.’s share sale.
The January foreign portfolio investment inflow reversed the $1.84 billion net outflow a year earlier, according to data released by the BSP.
On a month-to-month basis, the level of hot money inflow in January was up 49 percent from the $379.02 million net inflow recorded in December 2014.
Outflows reached $1.60 billion, compared with $3.12 billion a year earlier, while January inflows were recorded at $2.20 billion from the previous year’s $1.28 billion.
According to the BSP, transactions in Philippine Stock Exchange-listed securities yielded a net inflow of $561 million compared to the $139 million inflows the previous month, while placements in peso-denominated government securities resulted in net inflows of $36 million, lower than the $305 million net inflow in December.
About 82 percent of the investments flowed into PSE-listed securities such as holding firms, food, beverage and tobacco companies, and utilities firms, while 17.4 percent went to peso-denominated government securities, and 0.7 percent went to peso time deposits, the BSP said.
“The United Kingdom, the United States, Singapore, Switzerland, and Luxembourg were the top five investor countries for the month, with a combined share totalling 85.5 percent. The United States continued to be the main destination of outflows, receiving 84.3 percent of the total,” the BSP said.
Last year, foreign portfolio investments registered a net outflow of $310.21 million.
Meanwhile, the International Monetary Fund raised its growth outlook for the Philippines this year to 6.6 percent from its previous projection of 6.3 percent.