There was an increase in the net inflow of foreign portfolio investments to the Philippines in the first 10 months, as investors earlier this year showed strong appetite for stocks and bonds from emerging economies.

The net inflow in the 10 months to October reached $3.445 billion—up by 37 percent from the $2.509 billion registered in the same period last year.

However, the Bangko Sentral ng Pilipinas reported that the flow of foreign “hot money” to the country dropped in October from that of a year ago as the prolonged crisis in Europe dampened the outlook of fund managers on the global economy.

The BSP said that the drop in the flow of foreign portfolio investments last month was not peculiar to the Philippines, as other emerging markets had also been affected by investors’ growing risk aversion for securities from emerging markets.

The net inflow of hot money to the country settled at $237.44 million in October, down by 78 percent from the $1.089 billion reported in the same month last year, the central bank said Thursday.

“Combined investments in (Philippine) listed securities and peso-denominated government securities were much lower due to the lingering eurozone crisis,” the BSP said in a statement.

Data from the BSP showed that, in the first 10 months, gross inflows reached $14.14 billion, while outflows amounted to $10.69 billion.

The inflows were mostly in the form of purchases of listed stocks and government securities, the central bank report showed.

Main beneficiaries of foreign investments in PSE-listed entities include holding, property, telecommunications and utility firms.

Foreign portfolio investments to the country came mostly from investors based in Singapore, the United Kingdom, the United States, Hong Kong and Luxembourg.

The higher net inflow of foreign portfolio investments in the first 10 months was credited for the slight appreciation of the peso against the US dollar.

But the peso’s value against the greenback came in lower in October, compared with previous months as due to foreign fund managers’ decision to withdraw their portfolio investments in the country.

The BSP said the depreciation of the peso—which now hovers in the 43-to-a-dollar territory—since October was still within tolerable levels.