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Foreign Portfolio Investments Yield Net Inflows in January


Registered investments for the first month of 2013 amounted to US$2.8 billion, 61.5 percent higher than the figure for December 2012 and more than double the US$1.2 billion figure a year ago as investors reacted positively to: a) the Securities and Exchange Commission’s stand regarding the basis for compliance  with the limits on foreign ownership of certain sectors/firms; b) BSP’s decision to maintain key policy rates; c) the improved outlook by the International Monetary Fund on the Philippine economy; and d) the 6.6 percent growth in gross domestic product in 2012 which exceeded the 5 - 6 percent official target.  The bulk of registered investments were in PSE-listed securities (65.3 percent) and Peso GS
(33.6 percent).

The main beneficiaries of investments in PSE-listed shares were the following: holding firms (US$743 million), banks (US$344 million), property companies (US$235 million), telecommunication firms (US$177 million), and utility companies US$125 million).

Outflows, on the other hand, were almost the same as that for December 2012 (US$1.5 billion).  Net inflows, however, reached US$1.3 billion in January or almost six (6) times the US$213 million level in December.  Peso GS netted inflows of US$740 million, up from the previous month’s US$369 million, while PSE-listed securities and peso time deposits netted US$498 million and US$32 million, respectively.

Singapore, the United States, the United Kingdom, Luxembourg, and Hong Kong were the top five (5) investor countries for the month.  The United States continued to be the main beneficiary of outflows from investments.

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.

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