Foreign funds exited the domestic financial markets in January amid economic slowdown in China, geopolitical concerns overseas and declining oil prices, Bangko Sentral ng Pilipinas said Thursday.
Data showed that registered foreign portfolio investments or “hot money” posted a net outflow of $129.85 million last month, a reversal of the $592-million net inflow a year ago. It was, however, lower than the net outflow of $171 million in December 2015.
Bangko Sentral said this was “mainly due to lingering concerns on China’s economic slowdown and the plunging global oil prices.”
Foreign portfolio investments are overseas funds that are temporarily invested in local stocks, government securities and money market. These are also called “hot money” because of the ease they are invested in and taken out of the local markets.