The Bangko Sentral reported that total net foreign portfolio investment inflows of US$28.3 million were recorded for the three-week period ending October 13, 2000, based on reports submitted by the four major custodian banks. On a weekly basis, net inflows amounted to US$3.3 million, US$2.4 million and US$22.6 million for the weeks ending September 29 and October 6 and 13, 2000, respectively.
While foreign investor transactions in PSE-listed stocks and securities resulted in a net outflow of US$29.0 million during the three-week period, this was more than offset by the net increase in peso bank deposits of US$41.6 million. Normally, foreign investors temporarily park their funds in peso bank deposits prior to placing them in stocks/securities. Investments in government securities/money market instruments also generated a net inflow of US$15.7 million during the same period.
The three-week net inflow performance of foreign portfolio investments followed a US$21.3 million net outflow for the week ending September 22, 2000 and total net inflow of US$85.2 million for the three-week period ending September 15, 2000. The figures suggest that over the last seven weeks, foreign investors have generally been attracted by the relatively high domestic interest rates while also on the look-out for good investment opportunities in the stock market.