Foreign portfolio investments or hot money posted net inflows of $73 million in May, a reversal of the $569-million net outflows registered a year ago, on renewed investors’ interest in the domestic market and peaceful conduct of national elections.
Data from Bangko Sentral ng Pilipinas showed the May net inflows marked a turnaround from the $354-million net outflows in April. Total inflows in May reached $1.78 billion, while outflows amounted to $1.71 billion.
Net inflows in the first five months amounted to $129 million, lower than the $1.2-billion net inflows last year, which included large inflows for stock rights offerings by two holding firms, two universal banks and a property company.
About 83.8 percent of investments in May were in Philippine Stock Exchange-listed securities mainly involving holding firms, property companies, banks, food, beverage and tobacco firms and telecommunication firms. The 16.2-percent balance went to peso-denominated government securities.