May 2011 Transactions
Transactions in registered foreign portfolio investments for the month of May 2011 yielded a net inflow of US$364 million. The level was 105.1 percent higher than the figure for the comparable period in 2010, although 46.0 percent lower than April's performance. The continued inflow of investment funds resulted from heightened investor interest in PSE-listed securities and fixed income investments.
Registered investments amounted to US$1.5 billion, reflecting a 99.0 percent growth over last year's US$767 million performance, although 10.5 percent lower than last month's level.
Investments in PSE-listed shares for May reached US$886 million (or 58.0 percent of total registered investments), reflecting a growth of about 79.9 percent from the US$492 million recorded a year ago. Major beneficiaries were food, beverage and tobacco manufacturers (US$275 million); holding firms (US$182 million); property companies (US$122 million); banks (US$88 million); and telecommunication firms (US$82 million).
Investments in Peso government securities (Peso GS) reached US$513 million, up by 118.9 percent from US$234 million in 2010. Investments in Peso time deposits more than tripled to US$127 million from US$40 million last year.
Singapore, the United Kingdom, the United States, Hong Kong, and Luxembourg were the top five (5) investor countries, contributing 89.4 percent to total registered investments for the month.
Outflows rose to US$1.2 billion (or by 12.7 percent from US$1.0 billion in April 2011, and by 97.1 percent from the US$589 million last year).
Registration of inward foreign investments with the Bangko Sentral ng Pilipinas (BSP) is voluntary. It entitles the investor or his representative to buy foreign exchange from authorized agent banks and/or their subsidiary/affiliate foreign exchange corporations for repatriation of capital and remittance of dividends/ profits/earnings that accrue on the registered investment.
January to May Flows
Transactions for the first five (5) months of 2011 netted US$2.0 billion in inflows, 160.3 percent higher than the US$772 million recorded for the comparable period in 2010. Registered investments of US$7.8 billion were 119.6 percent higher than last year's US$3.5 billion. Investments in PSE-listed shares stood at US$4.0 billion, exceeding the US$2.5 billion recorded in 2010. Major beneficiaries were holding firms (US$1.0 billion); banks (US$679 million); telecommunication companies (US$520 million); utility companies (US$509 million); and property firms (US$497 million).
Outflows rose from US$2.8 billion last year to US$5.8 billion; these were mostly withdrawals from interim Peso deposits (IPDs).