By Komfie Manalo
Foreign portfolio investments registered with the Bangko Sentral ng Pilipinas (BSP) through authorized banks recorded net outflows of $27 million, resulting from the $1.1 billion gross outflows and the $1.0 billion gross inflows for the month. The BSP said this is a reversal from the $43 million net inflows posted in May 2024.
Foreign portfolio investments are also called hot money due to the speed with which they come in and out of the economy.
"The $1.1 billion gross outflows for the month were higher by $60 million (or by 6.0%) compared to the gross outflows recorded for May 2024 ($1.0 billion). The US remains to be the top destination of outflows, receiving $597 million (or 55.8%) of total outward remittances," the BSP said in a statement.
The BSP said the $1.0 billion registered investments decreased by 1.0% from the $1.1 billion recorded in May 2024 but were higher than June last year's $889 million.
During the month, 52.8% or $551 million of registered investments were in peso government securities.
The remaining 47.2% ($492 million) were in Philippine Stock Exchange (PSE)- listed securities, most of which were investments in holding firms, banks, transportation services, property, electricity, energy, power, and water.
"Investments for the month mostly came from the United Kingdom, the United States (US), Singapore, Luxembourg, and Switzerland, with a combined share of 86.9%," said the BSP.
Gross outflows, meanwhile, increased from $1 billion in May and $889 million recorded in June last year.
The BSP said the US remains the top destination of outflows, receiving $597 million of total outward remittances.
For the first six months of the year, foreign investments registered with the BSP through authorized agent banks yielded net inflows of $81 million, a turnaround from the $804 million net outflows noted for the same period last year.
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