Foreign fund managers withdrew their investments from the domestic financial markets in the first half, after the US Federal Reserve raised its interest rates.
Data from Bangko Sentral ng Pilipinas showed that registered foreign portfolio investments or hot money posted a net outflow of $461 million in January to June, a reversal of the $594-million net inflow recorded a year ago.
Gross inflows reached $8.323 billion in the six-month period, down from $8.5 billion a year ago, while total outflows widened to $8.784 billion from $7.9 billion.
Bangko Sentral said fund managers’ net withdrawals was triggered by the “US air strike against Syria, global terrorist attacks, interest rate increases by the US Federal Reserve, political turmoil in the US, and the closure order for several mining companies in the country.”
Portfolio investments posted a net inflow of $79.56 million in June.