Transactions in foreign portfolio investments for November 2014 yielded net inflows of US$369 million. This is a major turnaround after two (2) consecutive months of net outflows (the latest at US$180 million in October) as investments in PSE-listed shares rose due to: (i) an initial public offering by a retail company; (ii) additional listing of shares of a gaming corporation; and (iii) a top-up offering of a holding corporation’s shares. This month’s performance, however, was still lower compared to last year’s US$981 million net inflows.
Registered foreign portfolio investments in November 2014 amounted to US$1.8 billion, 2.2 percent better than last month’s level, but 40.4 percent lower compared to the same period last year due to the effects of the tapering of the quantitative easing program of the United States which ended in October 2014.
Total outflows for the month of US$1.4 billion were much lower than those recorded in October 2014 (US$1.9 billion) and in the same period last year (US$2.0 billion).
About 78.7 percent of investments registered in November were in PSE-listed securities (mainly holding firms; banks; property companies; telecommunication firms; and casinos and gaming companies); the rest of the investments were in Peso-denominated government securities (GS) (19.3 percent) and in other Peso debt instruments (2.0 percent). Transactions in PSE-listed securities yielded net inflows of US$446 million in contrast to the US$222 million outflows in October. Transactions in Peso GS resulted in net outflows of US$113 million, a reversal from the US$42 million net inflows in October 2014.
The United Kingdom, the United States, Singapore, Luxembourg, and Malaysia were the top five (5) investor countries for the month, with combined share to total of 76.0 percent. The United States continued to be the main destination of outflows, receiving 72.1 percent of total.
Registration of inward foreign investments with the Bangko Sentral ng Pilipinas (BSP) is voluntary under the liberalized rules on foreign exchange transactions. The issuance of a BSP registration document 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 earnings that accrue on the registered investment. Without such registration, the foreign investor can still repatriate capital and remit earnings on his investment but the foreign exchange will have to be sourced outside the banking system.
View Table (28 Nov 2014) | Table (5 Dec 2014)