(CNN Philippines) — More foreign portfolio investments — funds used by nonresidents to participate in stock markets or bond markets — continued to leave the Philippines in April this year, according to figures from the Bangko Sentral ng Pilipinas.
April marks the second consecutive month of so-called hot money leaving the Philippines. The period posted net outflows of $31 million, higher than the $22 million net outflows recorded in March. The figure also stands in stark contrast to net inflows of $325 million recorded in April 2014.
March 2015 ended a four-month long streak of net inflows that began November last year.
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In a statement, the BSP attributed April’s outflow to profit taking, “as the first two months of the year yielded a total net inflow of $1.8 billion.”
Registered foreign portfolio investments declined by 7.1% to $1.9 billion from the previous month’s $2.1 billion. Nevertheless, the BSP noted that the figure is still a slight improvement — 3.3% higher — compared to April last year. At $2 billion, total outflows alone were 6.6% lower compared to March 2015 ($2.1 billion), but 27% higher compared to April last year ($1.5 billion), the BSP added.
Approximately 74.3% of April’s investments were in securities listed in the Philippine Stock Exchange (PSE), particularly in holding firms; banks; property companies; food, beverage, and tobacco companies; and telecommunication firms.
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The central bank said that the remaining funds were invested in peso-denominated government securities (GS) (24.2%), and other peso debt instruments (OPDI —1.5%). “Transactions in Peso GS and OPDIs yielded net inflows of $122 million and $30 million, respectively, while those for transactions in PSE-listed securities resulted in net inflows of $172 million.”
April’s top five investors were the the U.K., the U.S., Singapore, Luxembourg, and Hong Kong, which accounted for a combined 80% share. The bank added that the U.S. continued to be the main destination of outflows, receiving an 84.6% share.
