Central bank: Portfolio investments suffer May outflow
Agence France Presse
MANILA - Foreign investment in Philippine stocks, bonds and other financial instruments suffered a net outflow in May as growth slowed, the peso weakened and inflation hit earnings, the central bank said Wednesday.
The bank recorded a 158.1 million-dollar net outflow last month, much higher than the 49.9 million-dollar outflow in April.
"The continued spiraling of oil and other commodity prices, the slowdown in economic growth and reports of mixed corporate earnings results in the first quarter, as well as the weakening of the peso contributed to the negative investor sentiment during the period," it said.
Gross May portfolio investments reached 700.4 million dollars, with some 91 percent invested in stocks and the balance invested in peso-denominated government securities and placements in peso time deposits.
Capital repatriations reached 858.4 million dollars.
Portfolio investments for the five months to May suffered a net outflow of 271.8 million dollars compared to a 1.7 billion-dollar net inflow for the comparable period in 2007.
"This development was brought about by risk aversion following the slowdown in the US and other major economies, the global credit crunch and the record high oil and other commodity prices which dampened expectations on corporate earnings," the central bank said.