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Friday, March 29, 2024

Hot money posted net outflow in April

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More foreign fund managers withdrew their investments from the domestic financial markets in April in reaction to the delayed approval of the 2019 national government budget coupled with the successive earthquakes that struck Luzon and the Visayas regions.

Data from the Bangko Sentral ng Pilipinas on Thursday showed that registered foreign portfolio investments or “hot money” in April 2019 posted a net outflow of $299 million, a reversal of the $279-million net inflow a year ago.

Gross inflows in April reached $989 million, significantly lower than $1.375 billion in gross inflows a year ago, while total outflows hit $1.288 billion, up from $1.1 billion.

“Gross inflows declined by 42.9 percent from the $1.7 billion figure in March 2019. This may be attributed to investor reaction to the delayed approval of the 2019 national government budget and the damage caused by the April 22 earthquake that jolted parts of Luzon and Visayas,” the Bangko Sentral said in a statement.

“Investors also stayed cautious amid the lack of fresh catalysts in the market and ongoing trade negotiations between the United States and China,” it said. 

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