Hot money inflows up 41.9%
MANILA, Philippines - The inflow of "hot money" or foreign portfolio investments posted a 41.9% increase in February 2013, based on data released by the Bangko Sentral ng Pilipinas (BSP) on Friday, March 15.
Data showed that foreign portfolio investments rose to US$2.1 billion in February 2013 from $1.5 billion in February 2012. However, this was 24.6% lower than the $2.8 billion posted in January 2013.
"(This was) due to market correction and profit taking amidst encouraging news on corporate earnings," the BSP said.
The bulk of the country's hot money inflows in February 2013 consisted of investments on Philippine Stock Exchange (PSE) securities. Around 76.4% or $1.6 billion went into the stock market in February.
The main beneficiaries of investments in the PSE are:
- Holding Firms - $474 million
- Banks - $332 million
- Property companies - $211 million
- Telecommunication firms - $151 million
- Utility firms - $123 million
"The United States, the United Kingdom, Hong Kong, Singapore, and Luxembourg -- with combined share of 86.6% -- were the top 5 investors for the month," BSP said. - Rappler.com