March 2010 Transactions
Transactions in Bangko Sentral ng Pilipinas (BSP) registered foreign portfolio investments posted a net inflow of US$76 million in March, reflecting a US$44 million increase from the net inflow a year ago, but lower than last month's US$139 million. Net inflows were boosted by the rise in US stock market as well as by the buoyant Asian markets, positive local corporate earnings turnout, and sustained appreciation of the peso.
Registration of inward foreign investments with the BSP is voluntary. It entitles the investor or his representative to buy foreign exchange from authorized agent banks or their subsidiary/affiliate foreign exchange corporations for repatriation of capital and remittance of related dividends/profits/earnings.
Gross registrations amounted to US$580 million, with about 83 percent going to stocks listed in the Philippine Stock Exchange and the 17 percent balance to government securities. Outflows aggregated
US$504 million, and largely pertained to withdrawals of investment divestment proceeds from interim peso deposits (or IPDs) where the funds were temporarily deposited pending subsequent reinvestment or repatriation/remittance.
For the first quarter of the year, transactions netted an inflow of US$385 million, more than 5 times the US$67 million net inflow for the comparable period in 2009. Registered investments grew by 24 percent year on year to reach US$1.7 billion. The top five (5) investor countries consisting of the United Kingdom, the United States, Singapore, Malaysia, and Luxembourg collectively contributed 83 percent of total registered investments.
Year to date outflows, on the other hand, reached US$1.3 billion, and were mostly withdrawals from IPDs (92 percent of total).