North Korea tests, 'ghost month' cause hot money outflows in August

ABS-CBN News

Posted at Sep 14 2017 08:59 PM

MANILA - North Korea's nuclear and missile tests coupled with the so-called "ghost month" spooked investors, resulting in more foreign portfolio investment outflows in August, the central bank said Thursday. 

The Bangko Sentral ng Pilipinas said there was a net outflow of $57.51 million last month, a reversal of the $206.47 million net inflow in July, and the $427.07 million net inflow in August last year.

Besides the generally thin trading during the Chinese "ghost month" and tensions between the United States and North Korea, the central bank said the mixed second quarter corporate earnings, the reinvigorated anti-drug campaign of the Duterte administration, as well as alleged anomalies at the Bureau of Customs also weighed on investor sentiment.

From January to August, foreign portfolio investments yielded a net outflow of $318.88 million compared to a net inflow of $1.97 billion booked during the same period last year.