Portfolio inflows hit $ 370 M

The Bangko Sentral ng Pilipinas (BSP) said foreign portfolio investments or "hot money" inflows totaled $ 370.9 million in February, higher than what was recorded in the previous month of $ 237 million. The BSP in a report yesterday said the "net inflow reflected renewed investor confidence owing to positive economic reports such as the better-than-expected fiscal deficit (R9.4 billion in 2007), expansion in exports (21.4 percent in December 2007),
and the strong earnings performance of several blue chip companies last year." BSP Governor Amando M. Tetangco Jr. said, however, that in the next few weeks, net inflows could be affected by the negative reports on the US economy, soaring oil prices — which triggered fears of rising inflation, and domestic political concerns.
In February, BSP said registered foreign portfolio investments in gross total, reached $ 1.2 billion, of which 53 percent or $ 623.7 million went to the listed shares in the Philippine Stock Exchange (PSE). In the meantime, investments in peso-denominated government securities, primarily Fixed Rate Treasury Bonds or FXTBs and placements in peso time deposits accounted for 22 percent and 25 percent, respectively, of registered investments.
Net outflows, on the other hand, totalled $ 814.1 million during the period. BSP said this came from the divestments from PSE-listed shares (48 percent) and government securities (23 percent); and withdrawals of peso deposits (29 percent).