Investment rises in RP

Investment rises in RP

MANILA (AFP): Foreign portfolio money is returning to the
Philippines after the global aftershocks of the Mexican currency
crisis, the Central Bank said yesterday.

Central Bank Governor Gabriel Singson said investment managers
plowed a net US$125 million through six major banks in the four
weeks to May 26, compared with a net outflow of $27 million in
the first five weeks of 1995 and $45 million in March.

The increased volume is exerting an upward pressure on the
peso, forcing the Central Bank to step up its purchases of
dollars, ending the month of May with a net purchase of $385
million, Singson said in a statement.

He attributed the situation to the "fresh mandate given to
President (Fidel) Ramos and his coalition party" in the May 8
elections.

He said foreign portfolio investments would continue to stream
in this month following a credit upgrade of the Philippines by
rating agency Standard and Poor's.

The additional liquidity in the financial system should "buoy
up the stock market which can, in turn, encourage more inflows,"
Singson said.