THE BANGKO SENTRAL NG PILIPINAS NOTES $961 MILLION OUTFLOW

The Bangko Sentral ng Pilipinas reported a net outflow of $961 million for the month of March which it attributed to the general risk sentiment due to the Covid 19 pandemic that has roiled the market.

Total foreign portfolio investments for March amounted to $1.9 billion while outflows was at $961 billion with investors from the US accounting for 68.5 percent of total outflows.

BSP said that the total $954 million registered investments reflected a 30.6 percent decline from the US$1.4 billion figure in February 2020.

About 93.0 percent of investments registered during the month were in PSE-listed securities (pertaining mainly to property companies, holding firms, banks, food, beverage and tobacco companies and transportation services firms) while the remaining 7.0 percent went to investments in Peso government securities.

The United Kingdom, the United States (US), Singapore, Hong Kong and Luxembourg were the top five (5) investor countries for the month, with combined share to total at 83.9 percent.

Outflows for the month (US$1.9 billion) were higher by 43.5 percent compared to the level recorded for February (US$1.3 billion). This may be attributed to the general risk off sentiment in the market that has prompted investors to liquidate portfolios and keep money in cash amid heightened worries over adverse economic impact of the coronavirus (COVID-19) pandemic and despite the initial fiscal stimulus package of the government. #coronavirusimpact #COVID19PH