Portfolio investments up for 3rd month

Net inflows of foreign investments in local stocks and bonds were recorded for the third consecutive month in June, the best run since September to November of last year.

Data from the Bangko Sentral ng Pilipinas (BSP) on Thursday showed a $44-million net inflow of foreign portfolio investments or “hot money” last month.

Although lower than May’s net inflow of $545 million, the performance in June was still better than the $85-million outflow in June 2013.

The net inflow in June completed the second quarter turnaround for hot money, which flowed out of the country for the entire first quarter of the year.

The biggest sources of cash are the United Kingdom, the United States, Singapore, Malaysia and Luxembourg, the BSP said.

For 2014, the BSP expects the country to have a $1.5-billion net inflow in hot money.

Hot money, named as such because of their fickle nature, is an indicator of the country’s attractiveness as an investment destination to fund managers.

Read more...