Foreign direct investments (FDI) inflows rose further in April to a six-month peak, the central bank said in a statement, supported by solid investor optimism towards the Philippines.
Net FDI inflows reached $1.027 billion for the month, surging from the $682 million in March but 3.2% less than the $1.062-billion inbound capital recorded in April 2017, the Bangko Sentral ng Pilipinas (BSP) reported yesterday.
Inflows marked the third straight month of increase and were the largest seen since October’s $1.918 billion. Investors grew more bullish about Philippine prospects as they poured more funds into equity.
Total equity investments reached $262 million in April, almost triple the $84 million tallied a year ago. These inflows were partly offset by $15 million in withdrawn capital, versus $14 million the prior year.
This yielded $247 million in net equity capital that was nearly four times bigger than the $70 million in April 2017. Investors from Singapore, Hong Kong, the Netherlands, the United States and Japan were the biggest sources of fresh capital in April, the BSP said.
Funds went to manufacturing; arts, entertainment and recreation; real estate; financial and insurance; and wholesale and retail trade activities. Surge in equity infusions more than offset declines in other investment components. Reinvested earnings slipped by 7.1% to $75 million from $81 million.