Foreign portfolio investments post $1-billion net inflows in September

The Philippines experienced a remarkable increase in foreign portfolio investments (FDI) in September 2024, with net inflows reaching $1.03 billion, as reported by the Bangko Sentral ng Pilipinas (BSP) on Thursday.

This figure marks a significant surge of over 92 percent compared to the previous month, with net inflows rising by $491.82 million from August's total of $533.95 million.

BSP highlighted that this month's net inflows represent a substantial turnaround from the $698.01 million net outflows recorded during the same period last year. Year-on-year comparisons reveal that registered investments for September nearly tripled, climbing to $2.53 billion from $887.61 million in September 2023—a remarkable increase of 185.2 percent.

Additionally, the report noted that gross outflows declined by 5 percent, decreasing from $1.59 billion in the same period last year to $1.51 billion this September. This drop in outflows suggests a stabilization of investor confidence amid fluctuating global economic conditions.

A majority of the registered investments in September, approximately 57.5 percent, were allocated to peso-denominated government securities. The remaining 42.5 percent was directed towards securities listed on the Philippine Stock Exchange, with notable investments in sectors such as banking, holding firms, property, transportation services, and food and beverage.

The primary sources of these investments included the United Kingdom, Singapore, the United States, Luxembourg, and Malaysia, which collectively accounted for 88.4 percent of September's inflows. This diversification of investment sources reflects a growing interest in the Philippine market from various international players.

From January to September, net inflows of portfolio investments reached $3.02 billion, marking a strong rebound from the $387.24 million net outflow recorded in the same period in 2023.

This surge in foreign investments underscores the Philippines' improving economic landscape and its increasing attractiveness as a destination for international investors. As the government continues to enhance its investment climate through policy reforms, the country is poised to capture a greater share of global investment flows moving forward.