Hot money reaches $28.4B in 2013

Cherrie Regalado

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Portfolio investment reaches $28.4 billion in 2013, a 14-year high

ALL TIME HIGH. Portfolio investments reach a 14-year all time high. Photo by AFP.

MANILA, Philippines – Sustained high economic growth, investment upgrades, and healthy macroeconomic fundamentals attracted a large amount of portfolio investments in 2013, bringing annual inflows to US$28.4 billion, the highest in 14 years.

Foreign porfolio investments are also called hot money given the ease with which they enter and leave the country.

In a statement on Thursday, January 16, the Bangko Sentral ng Pilipinas (BSP) said the full year registered foreign portfolio investments were 53.7% higher than the $18.5 billion recorded in 2012.

In December, more than $1.2 billion funds went to local capital markets, 59.1% lower than November’s $3 billion. This was attributed to the announcement by the US Federal Reserve that it was winding down its stimulus program.

Hot money went mostly to Philippine Stock Exchange-listed securities (74.7%) and peso-denominated government securities (23%).

The main recipients of the PSE-bound funds were the following:

  • Holding firms
  • Banks
  • Properties
  • Food and beverage
  • Tobacco
  • Telecommunication firms

The main sources of portfolio funds with a combined share of 83.5% were:

  • United Kingdom
  • United States
  • Singapore
  • Hong Kong
  • Luxembourg

– Rappler.com

 

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