Manila, Philippines – Foreign portfolio investments turned negative in February, recording the biggest net outflow in four months based on Bangko Sentral ng Pilipinas (BSP) data released on Thursday.
The $545.14-million net “hot money” outflow — a reversal from January’s net inflow of $162.16 million — was attributed by the BSP to profit-taking and investor concerns over US Federal Reserve rate hikes.
The February result was the largest net outflow since last October’s $563.42 million. It was also higher than the year-earlier net outflow of $409.01 million.
The bulk or 81 percent was invested in Philippine Stock Exchange-listed securities — mainly holding firms; property developers; banks; food, beverage and tobacco firms; and casinos and gaming companies.
Peso government securities accounted for the rest.
The United Kingdom, United States, Malaysia, Hong Kong, Luxembourg, and Singapore were the top six investor countries with a combined 85.1 percent of the total.
The United States remained the main destination of repatriated funds, accounting for 73.8 percent.