MANILA, Philippines – Foreign direct investments (FDIs) were cut by half in the first four months of the year after plunging 43 percent in April amid the negative global sentiment, data from the Bangko Sentral ng Pilipinas (BSP) showed.

Net FDI inflows reached $1.23 billion from January to April this year or 48.3 percent lower than the $2.38 billion registered in the same period last year.

Data showed net equity capital investments fell 50.5 percent to $279 million in the first four months from $564 million in the same period last year.

Equity placements dropped 61.6 percent to $369 million from $961 million while withdrawals plunged 77.4 percent to $90 million from $397 million.

The BSP said equity capital placements came mainly from the US, Japan, Singapore, the United Kingdom, and Spain.

The funds, the central bank added, were channeled primarily to manufacturing; real estate; electricity, gas, steam and air conditioning supply; financial and insurance; and wholesale and retail trade activities.

On the other hand, earnings of foreign companies operating in the Philippines and plowed right back into the country retreated 20.4 percent to $266 million in the first four months of the year from $334 million in the same period last year.

Likewise, non-residents’ net investments in debt instruments including net intercompany borrowings declined 53.8 percent to $688 million from $1.49 billion.

For the month of April alone, the BSP reported that FDIs reached $382 million or $289 million lower compared to $671 million booked in the same month last year.

The BSP traced the decrease to the continued decline in non-residents’ net placements in debt instruments.

Net placements in debt instruments fell 52.5 percent to $276 million from $582 million.

This partially offset the 121 percent jump in net equity capital investments to $25 million in April from $11 million in the same month last year.

Equity placements fell 56.8 percent to $39 million in April from $90 million in April last year but withdrawals declined at a faster rate of 82.2 percent to $14 million from $79 million.

Equity capital placements emanated largely from the US, the United Kingdom, Hong Kong, Germany, and Luxembourg and were channeled mainly to real estate; manufacturing; administrative and support service; financial and insurance; and wholesale and retail trade activities.

Similarly, reinvestment of earnings inched up by 3.4 to $81 million in April from $78 million in the same period last year.