Net portfolio investments up 58% at $665M in Jan-Feb

Net foreign portfolio investments to the Philippines grew 58 percent to $665 million in the first two months of the year, buoyed by inflows to the local stock market, the Bangko Sentral ng Pilipinas said. In a statement, the BSP said gross foreign portfolio investments totaled $2.260 billion in the two-month period, 81 percent of which could be traced to buying of shares in the Philippine Stock Exchange. "Gross investment inflows, which rose by 118 percent from the year-ago level, consisted mainly of PSE-listed shares of US$1.833 billion, the bulk of which were spread among holding firms and companies in the property, telecommunication, utility and banking sectors," the BSP said. On the other hand, investments in peso-denominated government securities, mostly FXTNs or fixed-rate treasury notes, accounted for 15 percent or $337.13 million of the total. "Foreign investments in PSE-listed shares and government securities were both more than double their corresponding levels in 2006 reflecting sustained investor confidence," the BSP said. Gross outflows for the period totaled $1.595 billion, composed mainly of divestments from stocks. For the month of February alone, the BSP said the net inflow from BSP-registered foreign portfolio investments reached $412.40 million, reflecting a 63 percent growth from January's $252.52 million figure. The BSP said the February inflows were boosted by the liberalization of the country's foreign exchange rules, positive economic reports, the continued strength of the peso, and the consistent slowdown of inflation. During this period, the government reported that the economy grew 5.4 percent in 2006. It also reported a lower-than-targeted budget deficit for last year.-GMANews.TV