Philippines posts June net portfolio inflow of $451-M

ABS-CBN News

Posted at Jul 14 2016 08:01 PM

MANILA - Foreign portfolio investment transactions resulted in net inflows of $451 million in June, the Bangko Sentral ng Pilipinas (BSP) said Thursday.

In June last year, a net outflow of $522 million was recorded.

Transactions in the first half of the year yielded net inflows of $580 million compared with net inflows of $638 million last year amid profit-taking, concerns about China's economic slowdown and the decline in global oil prices.

Foreign portfolio investments or "hot money" are speculative funds controlled by investors who look for short-term returns and high interest rate investment opportunities.

More than 80 percent of registered investments in June went into the stock market, while the rest went into government securities.

The United Kingdom, the United States, Singapore, Luxembourg and Hong Kong were the top five investors for June. 

The United States continued to be the main destination of outflows, receiving more than 84 percent of the total.

Registration of foreign investments with the central bank is voluntary, but is required if investors want to buy foreign currency that is to be sent out of the country. -- With Reuters