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$400M in foreign capital pulled out of PH in June

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Nearly $400 million in foreign capital pulled out of local stocks and bonds in the last three weeks of June following signals that the US Federal Reserve will soon end its easy money policy, data released on Thursday showed.

In a statement, the Bangko Sentral ng Pilipinas (BSP) said net outflows of foreign portfolio investments were recorded from June 10 to 28, totaling $397.06 million.

This offset the net inflows in the first week of June of $374.09 million, resulting in a net outflow of $22.9 million for the entire month.

Foreign portfolio investments are often referred to as “hot money” because these can be pulled out just as fast as they enter the country.

However, monetary officials remained optimistic, saying that total net investment for the first half of the year was still at $1.55 billion, up from just $896.46 million in the same period in 2012.

Excluding outflows, total gross investment for the month also reached $2.84 billion, more than double the $1.21 billion recorded in June last year.

“The transactions… were a knee jerk reaction of investors to the pronouncement of the US Federal Reserve and considered a healthy market correction after surges in inflows, particularly in April this year,” the BSP said.

The BSP said news of the US Fed’s unwinding triggered a selloff that resulted in a net outflow of $541 million from shares listed on the Philippine Stock Exchange (PSE).

These outflows were offset partly by net inflows in peso-denominated government debt and time deposits that reached $491 million and $27 million, respectively.

For local shares, $889 million flowed into holding firms, $270 million in local banks, $219 million in food companies, $207 million in beverage and tobacco makers, and $140 million went to telcos.

The United Kingdom, the United States, Luxembourg, Singapore, and Hong Kong were the top sources of investments, with the five countries making up 80.4 percent of the funds that entered the country.

Of the funds that pulled out of the country, $2.3 billion returned to the United States, the BSP said.


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Tags: Business , foreign capital flight

  • Samuel Corcoro II

    Huli ka Abnoy’s mongoloidism….you should have known that child abuse is in the form of publishing pictures of a minor whether or not you have the intention to malign or not the minor person.

    By posting the picture of Josh (son of Kris and Phillip) with a suggestive
    title is a clear case of child abuse. The NBI is capable of tracking you down
    Abnoy’s Mongoloidism….you cannot hide and we will pray you languish in jail.

    What you just this is a criminal offense under Republic Act No. 7610 made effective on June 17, 1992, otherwise known as “”Special Protection of Children Against Abuse, Exploitation and Discrimination Act.”. Hereunder is the pertinent portion of the said law anf the attendant penalty for Abnoy’s Mongoloidism:

    Section 3. Definition
    of Terms. –

    (a) “Children” refers to
    person below eighteen (18) years of age or those over but are unable to fully
    take care of themselves or protect themselves from abuse, neglect, cruelty,
    exploitation or discrimination because of a physical or mental disability or
    condition;

    (b) “Child abuse” refers to the maltreatment, whether habitual or not, of the child which includes any
    of the following:

    (1) Psychological and physical abuse, neglect, cruelty, sexual abuse and emotional maltreatment;

    (2) Any act by deeds or words which debases, degrades or demeans the intrinsic worth and dignity of a child
    as a human being;

    (3) Unreasonable deprivation of his basic needs for survival, such as food and shelter; or

    (4) Failure to immediately give
    medical treatment to an injured child resulting in serious impairment of his growth and development or in his permanent incapacity or death.

    Section 10. Other
    Acts of Neglect, Abuse, Cruelty or Exploitation and Other Conditions Prejudicial to the Child’s Development. –

    (a) Any person who shall commit any other acts of child abuse, cruelty or exploitation or to be responsible for other conditions prejudicial to the child’s development including those covered by Article 59 of Presidential Decree No. 603, as amended, but not covered by the Revised Penal Code, as amended, shall suffer the penalty of prision mayor in its minimum period.

    To all the reader’s of this page let us unite in disciplining our rank’s and we should not tolerate abuses such as the one committed by Abnoy’s Mongoloidism. Be responsible enough to be a worthy citzen of this country!

  • Abnoy’s Mongoloidism

    What the f*ck? Bakit tayo nilalabasan ng 400m? Bakit tayo nilalabasan? My Tito Noynoy will not like this premature ejakulation. Arrest all those pulling their capital out! Now na!

  • Samuel Corcoro II

    Shame on you Paolo Montecillo…you just gave us hint on “how not to do business journalism”, go back to your school and learn again how not to be destrucutive in using your pen.

    • Abnoy’s Mongoloidism

      Why do you hate Paolo na? Are you and Paolo in some kind of gay love affair?

  • just_the_guy

    The headline, while probably correct, smacks of sensationalism. The real situation is buried in the details – net outflow is only $22.9M.

    • Abnoy’s Mongoloidism

      F*ck the editor for not seeing this!

  • Weder-Weder Lang

    When the tide goes out, who do you prefer to catch swimming naked?

    a. President Benigno Simeon Aquino III
    b. NEDA Chief Arsenio Balisacan
    c. BSP Governor Armando Tetangco

    • Chrisnadal19

      answer: Weder-Weder Lang.

      • Abnoy’s Mongoloidism

        Who is Weder-Weder Lang? Are you his gay lover or her lesbian lover? Is Weder-Weder Lang and Tommy having an LQ?

      • Chrisnadal19

        mongoloid ka talaga! haha.

    • Abnoy’s Mongoloidism

      I want my Tito Noynoy to be naked. I’m sure he won’t mind. My Tito Noynoy and I always strip down whenever my Tito Noynoy sleeps over in my room. The feeling of my Tito Noynoy naked on me is so so good.



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