MANILA – Foreign portfolio investment registered a net outflow in May, reflecting a double-digit drop in inflows during the month, the Bangko Sentral ng Pilipinas (BSP) reported recently.
Data released by the central bank showed foreign portfolio investment posted a net outflow of $206.35 million in May.
Total inflows fell by18.4 percent to $1.212 billion while total outflows dropped 6.0 percent to $1.418 billion.
An inflow means more funds entered the Philippines than came out, while an outflow shows that more funds exited the country.
The latest net outflow compares with $24.35 million in net outflow in May 2017, and $279.29 million in net inflow last April.
“This may be attributed to higher United States Treasury yields and investor concerns about a weaker peso and rising oil prices which may affect inflation,” the BSP said in a statement.
US 10-year treasury yields posted a seven-year high of 3.128 percent in May, according to a report by Reuters.
On the local front, the Philippine peso carved fresh 11-year lows in May, following the release of “hawkish” statements from the US Federal Reserve.
According to the BSP, the investments in May came largely from the United Kingdom, the US, Singapore, Malaysia, and Hong Kong –accounting for a combined share of 74.8 percent.
Most of the investments were placed in securities listed on the Philippine Stock Exchange, mainly in banks, holding firms, and property companies. (GMA News)
