Foreign portfolio investments recorded a net inflow of $232.46 million in May, marking a reversal after two consecutive months of outflows as risk appetite improved.
The figure falls short of the $600.77 million inflow seen a year earlier, but it stands in stark contrast to the $1.601 billion net outflow posted in April and the $1.957 billion outflow in March.
These flows, often referred to as hot money because of their rapid entry and exit, shifted in May as global risk sentiment eased. The change followed April’s outflows, which were driven by higher U.S. rates, a strong dollar and a broader risk‑off environment.
Gross hot money inflows rose 20.95 % to $1.74 billion in May from $1.51 billion in April, though they declined 33.77 % year‑on‑year from $2.62 billion.
Of the inflows, $1.002 billion were directed to peso government securities, while $734.274 million went to Philippine Stock Exchange‑listed securities.
Gross outflows fell 51.59 % to $1.5 billion in May from $3.11 billion in April, and were 25.59 % lower year‑on‑year from $2.02 billion in May 2025. Outflows from PSE‑listed securities reached $838.467 million and from peso government securities $663.695 million.
Over the five‑month period, the net outflow narrowed to $4.17 billion, compared with a $1.52 billion net inflow in the same timeframe a year earlier. Net outflows for government debt amounted to $2.733 billion, while PSE‑listed securities saw $1.444 billion in net outflows.
Analysts expect portfolio flows to remain highly responsive to U.S. interest rates, the dollar’s strength, and geopolitical developments. If rate cuts become clearer and the dollar eases, a continued but uneven bias toward inflows is anticipated, though volatility is likely to persist.
Projected totals for the year suggest foreign portfolio investments will end with a net inflow of $1.8 billion, less than the $3.7 billion recorded last year.
