Record Philippine Equity Outflows to Continue, Coconut Bank Says
- Foreign funds have sold $1.24b of stocks in past five months
- Outflows may be moderate compared with other SE Asian markets
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International investors will probably continue to sell Philippine stocks as the prospect of a U.S. interest-rate increase damps demand for riskier assets and drives foreign capital to developed markets, according to United Coconut Planters Bank.
Overseas investors withdrew a net $1.24 billion from Philippine shares from April through August, a record for a five-month period, according to data going back to March 1999. Foreigners have turned net sellers this year, after six straight annual inflows, as slowing economic growth, an impending Federal Reserve rate rise and a surprise devaluation in the Chinese yuan weakened the appeal of emerging-market equities.