Long-duration foreign funds more known as foreign direct investments (FDI) poured inward in February totaling $1 billion or 13 percent more than only $926 million a year ago.
But according to data released by the Bangko Sentral ng Pilipinas on Wednesday, the first two months proved a minor letdown as FDI actually moved lower to only $1.19 billion from $1.41 billion last year.
Also, the bulk of the two-month FDI this year were plowed into so-called debt securities issued by local entities engaged in manufacturing (44 percent), financial and insurance (20 percent), real estate (16 percent, and other sectors (21 percent).
But in February this year alone, 13 percent of the long-duration foreign funds were invested in electricity, gas, and steam and airconditioning supply in anticipation of the warm months that in the Philippines started in April this year.
Of the foreign funds entering in February, $910 million went to debt instruments issued by domestic entities, up more than 19 percent from January when this totaled only $762 million.
Fewer foreign fund managers numbering only 62 reinvested their earnings from the endeavor in February when inflation at the time sought higher grounds, versus 66 of their number in January, reflecting a 6.5 percent decline month-on-month.
Viewed as a two-month aggregate, the FDIs plowed into debt securities dropped 15.4 percent to only $1.19 billion from last year’s $1.41 billion. The number of fund managers who reinvested their earnings during the period similarly dropped to only 137 or 1 percent fewer than the year ago number.
“All major FDI components yielded lower net inflows as foreign investors remained cautious amid persistent and broadening global inflation ,” the BSP reported.
The number of fund managers opting for equity opportunities in the Philippines in those two months similarly dropped to only 167 from last year’s 204.
Overall, FDIs in the first two months stood 14.6 percent lower to only $1.49 billion from last year’s $1.75 billion.
