The net inflow of foreign portfolio investment reached a six-week high in the week when President Duterte delivered his report of accomplishments in his first year in office, the latest Bangko Sentral ng Pilipinas (BSP) data showed.
On July 24-28, the $565.17-million, the inflow of hot money exceeded the $345.26-million outflow, resulting in a net inflow of $219.91 million.
Based on BSP data, that week’s net inflow of hot money was the highest since June 19-23’s $211.15 million.
The net inflow in the fourth week of July also reversed the net outflows registered during the second and third weeks of that month.
The inflow that week was higher than the $502.5 million a year ago and $246.18 million a week ago, while the outflow also surpassed last year’s $314.89 million and the previous week’s $261.24 million.
“Two factors likely contributed to the net inflow of foreign portfolio investments during the July 24-28 period: first was the State of the Nation Address [Sona] of President Duterte, and second was the cautious tone of the July 2017 US monetary policy meeting. The speech of President Duterte lifted investor optimism by highlighting the government’s resolve to increase infrastructure spending and implement needed tax reforms,” Land Bank of the Philippines market economist Guian Angelo S. Dumalagan explained.