March 2011 Transactions
Transactions in foreign portfolio investments for the month of March 2011 resulted in a net inflow of US$245 million, up by 222.7 percent from the US$76 million recorded a year ago due to a surge in investments in fixed income Peso government securities (Peso GS). Registered investments increased to US$1.6 billion (or by 167.6 percent) compared to only US$580 million last year of which US$767 million (or 49.4 percent of total registered investments) were in Peso GS, against only US$99 million in 2010. Jitters about the continuing protests and violence in the Middle East and North Africa redirected funds to Peso GS which offered comparatively higher yields on a regional basis. Compared to February 2011, however, net inflows for March were 54.0 percent lower than the US$534 million recorded last month due to the devastating earthquake and tsunami that hit northeastern Japan.
Investments in PSE-listed shares in March amounted to US$779 million (50.2 percent of total registered investments), reflecting a 62.0 percent growth over the US$481 million recorded a year ago. The US$5 million balance of registered investments were in money market instruments (US$5 million this year against zero in March 2010).
Singapore, the United Kingdom, the United States, Luxembourg and Hong Kong were the top five (5) investor countries, collectively contributing 89.3 percent to total registered investments.
Outflows for the month similarly increased from US$504 million last year to US$1.3 billion in 2011, with the bulk consisting of withdrawals from interim peso deposits.
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 dividends/profits/earnings that accrue on the registered investment.
1st Quarter Transactions
Transactions during the first quarter of 2011 netted an inflow of US$973 million, 152.8 percent higher than the US$385 million for the comparable period in 2010. Registered investments rose to US$4.6 billion, or by US$2.9 billion (about 175.2 percent) from last year's US$1.7 billion. Investments in PSE-listed shares of US$2.1 billion exceeded the US$1.3 billion figure in 2010 by 65.9 percent. Major beneficiaries were holding firms (US$535 million); banks (US$436 million); utility companies (US$330 million); telecommunication firms (US$284 million); and property companies (US$272 million).
Singapore, the United States, the United Kingdom, Luxembourg and Hong Kong were the top five (5) investor countries, contributing 89.6 percent to total registered investments for the quarter.
Outflows similarly increased from US$1.3 billion last year to US$3.6 billion (or by US$2.3 billion) and were mostly withdrawals from interim peso deposits (US$3.3 billion or 91.7 percent of total).