{"id":324875,"date":"2023-09-14T02:06:22","date_gmt":"2023-09-13T18:06:22","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=324875"},"modified":"2023-09-14T02:06:24","modified_gmt":"2023-09-13T18:06:24","slug":"philippine-fdi-inflows-fall","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/philippine-fdi-inflows-fall\/","title":{"rendered":"Philippine FDI inflows fall 20.4%"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Analysis and Recommendation<\/h2>\n\n\n\n<p>The Bangko Sentral ng Pilipinas (BSP) reveals that the inflow of foreign direct investments (FDIs) to the Philippines declined to $3.91 Billion (-20.4% YoY) in the 1st half (1H) 2023. This comes after net FDI inflows hit a five-month low in June where it dipped by 3.9% YoY to $484 million. <\/p>\n\n\n\n<p>Diving deeper into the components of the 1H23 net FDI inflow data:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Investments in debt instruments slid 25% YoY to $2.71-Billion.<\/li>\n\n\n\n<li>Total reinvestment of earnings fell by 11.2% YoY to $459-Million.<\/li>\n\n\n\n<li>Equity other than reinvestment of earnings slipped 7.3% YoY to $744-Million.<\/li>\n\n\n\n<li>Equity infusions from the US, Germany, Japan, and Singapore grew 3.5% YoY to $923 million &#8211; with the inflows mainly going towards manufacturing (54%), real estate (15%), and financial and insurance (10%).<\/li>\n\n\n\n<li>Withdrawals more than doubled to $180-Million.<\/li>\n<\/ul>\n\n\n\n<p><strong>Our View:<\/strong> Foreign investors continue to be concerned with the Philippines\u2019 growth prospects amid persistent global and local uncertainties. With interest rates remaining high at 6.25% and inflation averaging at 6.6% from January to August 2023 &#8211; still above the BSP\u2019s target range, FDI inflows have been weighed down and declining in recent months as investors are worried that the Philippines will deliver weaker-than-expected growth this year.<\/p>\n\n\n\n<p>We can see this negative sentiment spilling over to the local equities market with the benchmark PSEi declining by 3.68% so far this quarter. Noticeably, foreign investors have been heavily selling this September by about Php 10.8-Billion &#8211; and is set to be the largest monthly net foreign selling since the Php 28.1-Billion recorded in March 2023.<\/p>\n\n\n\n<p>While the path ahead looks uncertain, we are hopeful that the seasonal increase in economic and business activities for the remaining months of the year &#8211; along with the extended pause in interest rates and the anticipated easing of inflation &#8211; would encourage more FDIs to flow into the Philippines and boost the stock market. <\/p>\n\n\n\n<div style=\"height:26px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p style=\"font-size:16px\"><em><em>This report is prepared by PinoyInvestor\u2019s partner broker below. Find out more about <a href=\"https:\/\/www.pinoyinvestor.com\/smartinvestor\/our-partner-brokers\/\">our partner brokers<\/a> and sign up to avail their complete trading brokerage services.<\/em><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Here\u2019s a commentary on an important issue or event affecting the stock market<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-324875","post","type-post","status-publish","format-standard","hentry","category-special-reports","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/324875","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/comments?post=324875"}],"version-history":[{"count":1,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/324875\/revisions"}],"predecessor-version":[{"id":324877,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/324875\/revisions\/324877"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=324875"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=324875"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=324875"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}