Central Bank of Philippines : Foreign Portfolio Investments Yield Net Inflows in November 2017



Foreign portfolio investments registered in November 2017 amounted to US$1.1 billion, down by 18.5 percent and 5.2 percent from figures recorded the previous month and a year ago, respectively.

About 80.8 percent of investments registered during the month were in PSE-listed securities (pertaining mainly to holding firms, banks, food, beverage and tobacco companies, property companies, and utilities firms). The 19.2 percent balance went to Peso government securities whose transactions yielded net inflows of US$213 million. Meanwhile, transactions for the following instruments resulted
in net outflows: PSE-listed securities – US$105 million and other Peso debt instruments – less than US$1 million.

The United States (US), the United Kingdom, Singapore, Norway, and Luxembourg were the top five investor countries for the month, with combined share to total at 73.5 percent.

Outflows for the month of US$1.0 billion were lower by 47.6 percent and 43.2 percent than the US$1.9 billion and US$1.8 billion recorded in October 2017 and November 2016, respectively. The US continued to be the main destination of outflows, receiving 90.3 percent of total remittances.

On the overall, transactions for the month yielded net inflows of US$108 million, a reversal from the net outflows recorded in October 2017 (US$563 million) and November last year (US$607 million). This may be attributed to positive investor reaction to: i) news of favorable third-quarter corporate earnings;
ii) outcome of and pronouncements during the recently concluded 31st Asean Summit; and iii) the Senate’s approval of a higher personal income tax exemption of PHP250,000.00 annually, as part of the Senate version of the government’s tax reform program.

Year-to-date transactions (2 January to 1 December 2017) resulted in net outflows of US$635 million, in contrast to the US$673 million net inflows for the comparative period last year (4 January to 2 December 2016). This may be attributed to certain domestic and international developments (including the interest rate hikes by the US Federal Reserve, global terrorist attacks, North Korea’s nuclear missile testing and the closure order for several mining companies in the country).

Registration of inward foreign investments with the Bangko Sentral ng Pilipinas (BSP) is optional under the liberalized rules on foreign exchange (FX) transactions. The issuance of a BSP registration document entitles the investor or his representative to buy FX from banks and their subsidiary/affiliate FX corporations for repatriation of capital and remittance of earnings that accrue thereon.

View Table (1 Dec 2017) | Table (24 Nov 2017)

Central Bank of the Philippines published this content on 15 December 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 15 December 2017 11:01:08 UTC.