BSP bares forex inflow of $67.2 M

Foreign portfolio investments for September posted a net inflow of $67.2 million, a sharp reversal from the past two previous months which showed a negative balance.

In July, net outflow amounted to $32.7 million as inflows totaled only $126.6 million as against outflows of $159.3 million while in August, inflows amounted to $115 million as against outflows of $138.2 million resulting in a net outflow of $23.2 million.

For September, inflows amounted to $237.6 million while outflows slowed down to $170.4 million.

BSP sources said the September turnaround may be an indication that the current weakness of the peso is finally having a positive impact as investors are now picking up stocks which are at bargain prices.

Normally, investors buy when stock prices are low and sell when prices are at their peak.

The local bourse has been battered in the past few months as the peso continued to take a beating.

Traders said foreign funds had left the country as soon as the market began falling. However, with the perception that the stock market may already be at the bottom, bargain hunters may be back, positioning themselves for the eventual recovery of the market.

In fact, stock analysts note that blue chip stocks continue to perform well even though they have significantly shed their previous overpriced value. – Marianne Go