Inflows of foreign portfolio investments declined in February partly on concerns over the Department of Environment and Natural Resources’ order shutting down a number of mines while investors also pulled out more of so-called “hot money,” resulting in a net outflow of $409.1 million.
Bangko Sentral ng Pilipinas data showed that portfolio investments last month reached $981.2 million, the lowest monthly inflow since January 2016’s $820.4 million.
Inflows in February dropped 14.5 percent from $1.147 billion a month ago and by 8.2 percent from $1.069 billion a year ago. The BSP said investor sentiment was weighed down by the following local and foreign developments: concerns on the Trump administration’s immigration and trade policies; and the DENR’s closure orders covering several mining firms nationwide.
In February, Environment Secretary Gina Lopez ordered the closure of 23 mining operations and suspended five others in 10 provinces.
A week later, Lopez ordered the cancelation of 75 mineral production sharing agreements entered into by the government with mining companies.
The interagency Mining Industry Coordinating Council is undertaking a three-month review of Lopez’s orders, on top of the mandated review of all other mining contracts across the country.
Outflows of hot money that month reached $1.39 billion, up 64.4 percent from $845.83 million in January and 37.5 percent higher than the $1.011 billion in February last year.