The Philippines recorded a net inflow of $96.59 million in foreign portfolio investments in November, reversing an outflow in the previous month.
The inflow, a key indicator of investor sentiment, marked a significant improvement from the $529.68 million outflow recorded in October. However, it was 85.6% lower than the $671.77 million recorded in November 2023.
Foreign portfolio investments, often referred to as “hot money,” are speculative funds that can quickly move in and out of financial markets.
Gross inflows rose by 18.2% year-on-year to $1.86 billion in November from $1.57 billion in the same month last year. Compared to October, inflows increased by 25.8% from $1.48 billion.
The central bank said 71.4%, or $1.33 billion, of registered investments were directed toward peso-denominated government securities. The remaining 28.6%, or $531.71 million, went into securities listed on the Philippine Stock Exchange, particularly in sectors such as banking, holding firms, and property.
Gross outflows surged 95.4% year-on-year to $1.76 billion from $903.1 million in November 2023. Month-on-month, outflows decreased by 12.2% from $2.01 billion in October.
The United States remained the primary destination for outflows, accounting for 51.8%, or $914.2 million, of the funds withdrawn.
From January to November, the Philippines registered a net inflow of $2.59 billion in speculative funds, a significant turnaround from the $43.66 million net outflow during the same period in 2023.
