MANILA - Hot money posted net inflows in October, reversing 7 consecutive months of outflows, the Bangko Sentral said in a statement.
BSP-registered foreign portfolio investments yielded $439 million for the month, as gross inflows reached $1.4 billion outpacing outflows of $913 million.
Around 78.8 percent of the total investments went to companies listed in the stock exchange, while the remaining 21.2 percent went to investments in government securities.
The UK, US, Singapore, Luxembourg and Hong Kong were the top five investor countries for the month, with combined share to total at 80.9 percent, the BSP said.
Net outflows for the January to October period was at $3.9 billion. This is larger than the 2019 year ago figure of $1.2 billion, it said due to "the ongoing impact of the COVID-19 pandemic to the global economy and financial system, coupled with international and domestic developments such as geopolitical tensions, certain corporate governance issues and extended quarantine measures in select regions in the country."
The Philippine economy shrank 11.5 percent in the third quarter, marking the first time in 35 years that the country’s gross domestic product (GDP) contracted for three straight quarters.
The third quarter slump was steeper than the 9.8 percent decline seen by economists in a Reuters poll.