Portfolio investments surge to $3.5B in April

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The Bangko Sentral ng Pilipinas (BSP) on Thursday announced that portfolio investment transactions in April this year surged to $3.5 billion.

April’s figure was 50.3 percent than the $2.3 billion recorded in the previous month.
The central bank added that year on year, registered investments in 2013 more than doubled to $3.5 billion, or by 137.4 percent from the $1.5 billion level recorded last year.

Increased portfolio investments can be attributed to the positive reports on corporate earnings, its decision to cut special deposit account rates by another 50 basis points, large subscription to LT Group Inc.’s shares and the Standard and Poor’s increased growth forecast for the Philippines, it continued.

On the other hand, capital inflows that went to listed securities at the Philippine Stock Exchange (PSE) reached $3 billion, or 85.9 percent; peso government securities, $364 million, or 9.9 percent; and peso time deposits, $149 million, or 4.3 percent.


The BSP noted that the main beneficiaries of investments in PSE-listed shares include food, beverage and tobacco companies, $1.1 billion; holding firms, $981 million; property companies, $260 million and banks, $216 million.

Meanwhile, outflows went down to $2.4 billion in April from $2.7 billion in March.
“Thus, transactions yielded net inflows of $1.1 billion in contrast to the $395-million net outlows in March; the figure was also more than thrice the $333-million net inflows a year ago,” the central bank stated.

In addition, the United States, United Kingdom, Singapore, Hong Kong and Luxembourg were the top five investor countries for the month, whose combined shares accounted for 87.8 percent of total inflows. The US continued to be the main beneficiary of outflows from investments.

Mayvelin U. Caraballo

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