Foreign portfolio investments swung to a net outflow of $563.42 million in October mainly due to profit-taking, widening the year-to-date “hot money” outflows, the Bangko Sentral ng Pilipinas (BSP) said Thursday.
Data showed that the $1.948-billion outflow of portfolio investments last month were more than the $1.385-billion inflow, reversing the net inflows of $112.63 million in September and October last year’s $59.87 million.
The hot money inflows in October were nonetheless 6.8 percent higher than September’s $1.297 billion, which the BSP attributed to “investor optimism arising from the anticipated approval of the tax reform program of the government.”
The first tax reform package, aimed at slashing personal income tax rates while jacking up taxes on consumption, is expected to be approved by President Duterte before yearend.
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However, last month’s inflows were lower than a year ago’s $1.633 billion.
“About 89.8 percent of investments registered during the month were in Philippine Stock Exchange-listed securities; 10.1 percent went to peso government securities, while the 0.1 percent balance to other peso debt instruments and peso time deposits,” the BSP said.
