RP net portfolio investments surge in 2006

Net foreign portfolio investments in the Philippines rose 24 percent in 2006 from a year earlier as positive economic news and strong company profits lured investors to stocks and bonds, Bangko Sentral ng Pilipinas data showed on Thursday.

The BSP said net portfolio investments reached $2.6 billion in 2006, from $2.1 billion the previous year.

"Sound economic fundamentals, robust corporate earnings results, outlook upgrades in the country's credit rating and economic growth and the strengthening of the peso contributed to this impressive performance," it said in a statement.

Foreign portfolio funds invested in the stock, bond and money markets last year totalled $7.97 billion, offset by total outflows of $5.3 billion, resulting in a net figure of $2.6 billion.

In contrast, 2005 saw $5.49 billion in gross portfolio inflows and $3.39 billion in gross outflows leaving a net figure of $2.1 billion, the BSP said.

Last year's two large initial public offerings -- First Gen Corp. and PNOC Energy Development Corp.-- and follow-on offerings by other firms helped stimulate foreign portfolio investments, the BSP said.

Seventy-two percent of the inflows last year went to company shares, while the rest were invested in government securities, it said.

Foreign placements in listed firms and government paper expanded 50 percent and 34 percent respectively last year from a year earlier, which the BSP said was a sign of improving investor confidence. Reuters

Philippines Oct net FDI rises 125 pct on yr

MANILA, Jan 10 (Reuters) - Net foreign direct investment (FDI) in the Philippines more than doubled in October from a year earlier, central bank data showed on Wednesday.
Investors brought in $304 million in net foreign investments in October 2006, 125 percent higher than the $135 million the country received in the same month in 2005.

In the 10 months through October, net FDI was $1.96 billion, higher than a year earlier $1.13 billion and above the central bank's estimate of $1.6 billion for all of 2006.

"FDI inflows were bolstered by the upbeat investor sentiment as the economy continued to post strong macroeconomic fundamentals as evident in the better-than-expected fiscal position, steadily declining inflation and comfortable external payments position," the central bank said in a statement.

Foreign business chambers in the country have estimated the country can attract $32 billion in FDIs from 2007 to 2010 if the government sustains its reform momentum.

Investors have praised President Gloria Macapagal Arroyo for improving government finances through a broader and higher national sales tax but they want to see a crackdown on corruption and more transparent bidding processes.