Investor sentiment shifts: April sees hot money outflows of $351.87 million

Net outflows of short-term foreign investments, commonly known as “hot money,” surged significantly in April, reaching $351.87 million compared to a meager $70.26 million in the previous month.

This considerable increase represents a notable departure from the corresponding period in 2022, which witnessed net inflows amounting to $1.4 billion, according to the latest data released by the Bangko Sentral ng Pilipinas (BSP).

Foreign investments registered with the BSP experienced substantial net outflows, totaling $680.07 million, sharply contrasting the net inflows of $1.39 billion observed during the same period last year.

Furthermore, the BSP revealed that 57.3 percent of the registered investments were channeled into securities listed on the Philippine Stock Exchange, spanning various sectors such as banks, holding firms, property, food and beverage, tobacco, and transportation services.

In contrast, approximately 42.7 percent of the investments were dedicated to peso-denominated government securities, while less than one percent was allocated to other instruments, including unit investment trust funds, exchange-traded funds, and Philippine Depositary Receipts.

The top 5 investor countries were the United Kingdom, the United States, Singapore, Luxembourg, and Norway.

Together, these nations accounted for 84.1 percent of the total share, as indicated by the BSP report.

In the previous year, net hot money inflows amounted to $886.7 million, falling short of the projected $3.5 billion. Looking ahead to the current year, the central bank foresees net hot money reaching $2.5 billion, with expectations of further growth to $3.5 billion by 2024.

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