'Hot money' almost quadrupled in first 7 months of 2011
By Lawrence Agcaoili (The Philippine Star) Updated August 12, 2011 12:00 AM Comments (1) View comments
MANILA, Philippines - Foreign portfolio investments or “hot money†almost quadrupled in the first seven months of the year on the back of strong investments in publicly-listed shares and in peso-denominated government securities, the Bangko Sentral ng Pilipinas (BSP) reported yesterday.
BSP Gov. Amando Tetangco Jr. said in a statement that net inflows of foreign portfolio investments surged 280 percent to $2.663 billion in January to July from $700.89 million booked in the same period last year.
Portfolio investments are called hot money because they can be pulled out easily.
Philippine share prices closed higher on yesterday, bucking the decline in global markets.
The bellwether 30-company Philippine Stock Exchange (PSE) index climbed 20.88 points or 0.49 percent to 4,311.02 while the all shares added 8.73 points or 0.29 percent at 2,996.81.
Global stocks tumbled on Monday in reaction to Standard & Poor’s historic downgrading of US long-term sovereign debt on Friday last week.
Tetangco pointed out that inflows more than doubled to $10.49 billion in the first seven months of the year from $4.978 billion in the same period last year.
Data showed investments in PSE-listed shares surged 62 percent to $5.5 billion from $3.4 billion. Major recipients were holding firms with $1.4 billion; banks with $969 million; property developers, $813 million; telecommunications companies, $713 million; and utilities firms, $679 million. --More at:
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