November portfolio outflows US-bound

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Registered investments in November this year amounted to $2 billion, more than twice the $953 million figure last month and reflecting an 80.8 percent growth compared to the $1.1 billion level recorded during the same month a year ago.

About 66.8 percent of investments registered during the month were in PSE-listed securities (pertaining mainly to food, beverage and tobacco companies holding firms, property companies, banks and utilities companies), while the 33.2 percent balance went to peso government securities (GS).

The United Kingdom, Singapore, the United States, British Virgin Islands and Cayman Islands were the top five investor countries for the month.

Transactions in peso GS and PSE-listed securities yielded net inflows of $510 million and $322 million, respectively.

The United Kingdom, Singapore, the United States, British Virgin Islands and Cayman Islands were the top five investor countries for the month, with combined share to total at 83.5 percent.

Outflows for the month of $1.2 billion were higher by 18.4 percent compared to figures recorded for October 2018 and November 2017 (both at levels of about $1.0 billion).
The US continued to be the main destination of outflows, receiving 84.8 percent of total remittances.

On the overall, transactions for the month resulted in net inflows of $832 million. This reflects a turnaround from the $68 million net outflows recorded last month and an improvement from the $108 million recorded for November 2017.

This may be attributed to positive investors’ reaction to the following: (i) decreasing global oil prices; (ii) Bangko Sentral ng Pilipinas’ decision to raise its policy rate; and (iii) progress on the rice tariffication bill, all of which are expected to temper inflation as well as Chinese President Xi Jinping’s visit to the country, which was expected to further deepen ties with China in terms of diplomacy and business development.

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