BSP reports more hot money outflows in Sept.

Published October 17, 2019, 12:00 AM

by manilabulletin_admin

By Lee C. Chipongian

The country’s foreign portfolio investment registered net outflows of $232 million in September, lower compared to August’s net outflows of $392 million, the Bangko Sentral ng Pilipinas (BSP) reported Thursday.

MB file photo.
MB file photo.

Same time in 2018, the month of September also recorded net outflows of $440 million.

The BSP said that transactions of BSP-registered foreign portfolio investments have total outflows of $1.5 billion which more than offset the $1.3 billion inflows for the month.

The $1.3-billion inflow was 7.2 percent up from $1.2 billion in the previous month.

About 80.2 percent of investments registered in September were in PSE-listed securities such as property companies, holding firms, banks, food, beverage and tobacco companies, and transportation firms.

The remaining 19.8 percent went to investments in peso government securities.
The BSP said the five investor countries are the United Kingdom, the US, Singapore, Malaysia, and Luxembourg. Combined share to total of these countries stood at 72.3 percent.

“On the other hand, outflows for the month ($1.5 billion) were slightly lower compared to the level recorded for August 2019 ($1.6 billion or by 4.5 percent). The US received 75.0 percent of total outflows,” the BSP said.

The BSP blamed the continuing hot money outflows to domestic and international developments.

These include ongoing trade tensions between the US and China; attacks on Saudi Aramco’s oil facilities in Saudi Arabia which triggered the largest jump in oil prices in decades; the US Federal Reserve’s decision to cut interest rates; the BSP’s decision to cut interest rates and the reserve requirements ratio of banks; and the impeachment inquiry against US President Donald Trump.