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THE Philippines has posted net inflows on foreign portfolio investments or ‘hot money’ at end-May 2015, despite consecutive net outflows for the last three months of the year.

Bangko Sentral ng Pilipinas (BSP) reported Thursday that foreign portfolio investments at end-May 2015 recorded net inflows of USD1.6 billion.

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The five-month net inflows in foreign portfolio investments was a reversal from net outflows of USD1.42 billion in the same period last year.

The BSP, on the other hand, mentioned that foreign portfolio investments at end-May declined by 17.8 percent from USD1.9 billion level in April.

Among the factors that affect the lower net inflows are: a) disappointing first quarter corporate earnings; b) poor manufacturing data in China; and c) weaker-than-expected first quarter gross domestic product growth.

For the month of May alone, the country increased its net outflows of foreign portfolio investments to USD569.27 million from USD31.14 million in April.

“This development may be attributed to profit taking and outward remittance of sales proceeds from investments in PSE-listed stocks to Peso GS previously kept in interim peso deposits,” the central bank explained. pna

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