PRESS RELEASE 10 December 2018 Securities issued by Hungarian residents and breakdown by holding sectors October 2018 According to securities statistics, the amount outstanding of equity securities and debt securities issued by Hungarian residents 1 was HUF 45,781 billion at market value at the end of October 2018, reflecting an increase of HUF 219 billion relative to the end of September. Within this, stocks of debt securities increased by HUF 187 billion and that of equity securities by HUF 32 billion. Stocks of securities held by households increased by 49 and that held by financial corporations fell by HUF 139 billion. Non-residents securities holdings increased by HUF 278 billion. Developments in the outstanding amount of securities by types of security Table 1 Outstanding amount of securities issued by residents and components of by main types of security; at market value; HUF billions; October 2018 Securities Debt securities Opening Transactions Price Foreign Other volume exchange rate Closing Government securities 28 507 119-118 111 0 28 619 62,5% 112 Mortgage bonds 1 194 60-4 0 0 1 250 2,7% 56 Other bonds 1 799 9-3 13 0 1 817 4,0% 19 Equity and investment fund shares Ratio % Change total 31 499 188-124 123 0 31 686 69,2% 187 Investment fund shares 6 614 38-27 7 0 6 632 14,5% 18 Quoted shares 7 449 12 2 0 0 7 463 16,3% 14 total 14 063 50-25 7 0 14 095 30,8% 32 Total securities 45 562 238-149 131 0 45 781 100,0% 219 The market value of securities issued by central government increased by HUF 112 billion in October. The stock of forint-denominated securities amounted to HUF 22,681 billion and that of foreign currency-denominated securities to HUF 5,938 billion at the end of the month. Within total holdings, the end-of-month stock of securities classified into government securities was HUF 28,488 billion and that of bonds, not classified into government securities and issued by other organisations classified into the government sector, 2 was HUF 131 billion. 1 In the press release, equity securities include mutual fund shares and quoted shares issued by residents. For more details about the types of securities presented in the press release, see the methodological notes at the following link: http://www.mnb.hu/letoltes/ertekpapir-modszertanhu.pdf. 2 Non-financial corporations and guarantee organisations, classified into the central government sector.
There was one new issuance in the market of long-term forint-denominated government securities in October in the value of HUF 16 billion, and there was one maturity in the value of HUF 158 billion. At the auctions, tap issues amounted to HUF 362 billion and redemptions to HUF 102 billion at nominal value. Net sales of bonds to households, sold outside of auctions, resulted in a rise in total holdings by HUF 76 billion. In the market of short-term forintdenominated government securities, new issues and tap issues of discount Treasury bills amounted to HUF 186 billion and maturities to HUF 261 billion. The amount of interest-bearing instruments (securities issued to households) was lower than that of maturities: sales and maturities amounted to HUF 366 billion and HUF 392 billion, respectively, at nominal value. Yields on forint-denominated securities rose slightly; the price change was HUF -36 billion. There was one issuance in the market of foreign currency-denominated securities issued by central government in a value of HUF 324 billion in October, one bond was partly redeemed in a value of HUF 263 billion. Price reduced the market value of securities by HUF 82 billion, while exchange rate resulted in an increase of HUF 111 billion. The market value of mortgage bonds issued by resident credit institutions rose by HUF 56 billion during the month under review. In October, the amounts of issues and tap issues were HUF 107 billion, there was one maturity in the value of HUF 5 billion and redemptions amounted to HUF 39 billion. The stock of forint-denominated mortgage bonds amounted to HUF 1,241 billion and that of foreign currency-denominated mortgage bonds to HUF 9 billion at the end of October. The market value of other bonds, issued by other than central government, rose by HUF 19 billion. The stock of bonds issued by credit institutions was HUF 1,174 billion and that of bonds issued by other sectors was HUF 643 billion at the end of the month. In October, the amount of new issues was HUF 2 billion and that of tap issues was HUF 19 billion; maturities amounted to HUF 10 billion. Issues and tap issues were related to securities issued by credit institutions, other financial intermediaries and non-financial corporations. Maturities were mainly related to securities issued by credit institutions. Exchange rate increased the value of holdings of other bonds by HUF 13 billion. In October, the market value of mutual fund shares issued by Hungarian residents rose by HUF 18 billion. Shares issued by money market funds amounted to HUF 468 billion and those issued by other funds to HUF 6,163 billion at the end of the period. The value of new issues was HUF 3 billion and that of maturities was HUF 20 billion in the review month. Price reduced the value of holdings by HUF 27 billion and exchange rate increased it by HUF 7 billion. The stock of quoted shares issued by resident companies, at market level, rose by HUF 14 billion in the month and amounted to HUF 7,463 billion at the end of October. Within this, shares issued by credit institutions, non-financial corporations and the other sectors amounted to HUF 2,918 billion, HUF 4,490 billion and HUF 55 billion, respectively. Changes in the prices of blue chips were mixed, with market capitalisation rising marginally, by 0.2 per cent relative to the previous month. Price increased the value of holdings by HUF 2 billion during the month. 2
Securities holdings in a breakdown by holding sector Table 2 Holdings of securities issued by residents and components of in holdings in a breakdown by holding sector; at market value; HUF billions; October 2018 Holding sectors Opening Transactions Price Foreign Other volume exchange rate Closing Ratio % Change Non-financial corporations 1 858 3-1 1 0 1 861 4,1% 4 Financial corporations total 16 905-104 -45 10 0 16 766 36,6% -139 of which Credit institutions 10 185-200 -20 4 0 9 969 21,8% -216 Central government 1 470 21 7 0 0 1 497 3,3% 27 Households* 10 566 62-21 8 0 10 615 23,2% 49 Rest of the world 14 763 256-89 111 0 15 042 32,9% 278 Total 45 562 238-149 131 0 45 781 100,0% 219 * Including stock of non-profit institutions serving households. The total market value of securities stocks amounted to HUF 45,781 billion at the end of October. Here, residents and non-residents held HUF 30,739 billion (or 67.1%) and HUF 15,042 billion (or 32.9%), respectively. Chart 1 Change in the distribution of securities holdings issued by residents by holding sector in October 2018; HUF billions 300 200 100 0-100 Quoted shares Investment fund shares Other bonds Mortgage bonds Government securities -200-300 Non-financial corporations Financial corporations Central government Households* Rest of the world 3
Oct 2016 Nov 2016 Dec 2016 Jan 2017 Feb 2017 Mar 2017 Apr 2017 May 2017 Jun 2017 Jul 2017 Aug 2017 Sep 2017 Oct 2017 Nov 2017 Dec 2017 Jan 2018 Feb 2018 Mar 2018 Apr 2018 May 2018 Jun 2018 Jul 2018 Aug 2018 Sep 2018 Oct 2018 The increase in holdings by non-residents due to transactions accounted for HUF 256 billion in the month. Here, the sector s stocks in the market of securities issued by the government sector rose by HUF 237 billion, mainly reflecting the effect of the increase in holdings of forint-denominated government bonds. Non-residents increased their holdings of quoted shares by HUF 27 billion. Their holdings of mutual fund shares and other bonds fell by HUF 4 billion and HUF 3 billion, respectively. In October, credit institutions holdings of securities fell by HUF 200 billion due to transactions. Within this, their holdings of securities issued by the government sector fell by HUF 218 billion and those of mortgage bonds rose by HUF 7 billion. The sector s holdings of other bonds and quoted shares increased by HUF 6 billion and HUF 5 billion, respectively. Holdings of securities by households (including non-profit institutions serving households) increased by HUF 62 billion, due to transactions, in the period under review. Households raised their stocks of government securities by HUF 103 billion. Here, their holdings of short and long-term forint-denominated government securities increased by HUF 32 billion and HUF 64 billion, respectively, and their holdings of foreign currency-denominated securities increased by HUF 7 billion. By contrast, the sector s savings in mutual fund shares, quoted shares and other bonds fell by HUF 26 billion, HUF 11 billion and HUF 3 billion, respectively. Holdings of securities by non-profit institutions serving households were unchanged in the month. In October, the increase in securities held by the household sector continued. Holdings of securities by the financial corporate sector fell relative to the previous month. By contrast, non-residents percentage share of total holdings increased. Chart 2 Distribution of securities holdings issued by residents in a breakdown by holding sector; at market value; HUF billions 18 000 16 000 14 000 12 000 10 000 8 000 6 000 4 000 2 000 0 Non-financial corporations Financial corporations Central government Households* Rest of the world 4
Distribution of securities issued by central government by holding sector Within the distribution of stocks of securities issued by the central government, recorded at market value, financial corporations and non-financial corporations holdings declined by HUF 228 billion and HUF 19 billion, respectively, in October. By contrast, non-residents holdings increased by HUF 250 billion and those of general government by HUF 21 billion. Combined holdings of households and non-profit institutions serving households increased by HUF 88 billion in the month. Table 3 Distribution of securities holdings issued by central government in a breakdown by holding sector; at market value; HUF billions; October 2018 Holding sectors Opening Transactions Price Foreign Other volume exchange rate Closing Non-financial corporations 400-19 0 0 0 381 1,3% -19 Financial corporations total 12 778-206 -28 6 0 12 549 43,9% -228 Ratio % of which Credit institutions 8 866-218 -18 4 0 8 635 30,2% -232 Central government 565 21 0 0 0 587 2,0% 21 Households* 5 771 87 0 2 0 5 859 20,5% 88 Rest of the world 8 993 237-89 103 0 9 243 32,3% 250 Total 28 507 119-118 111 0 28 619 100,0% 112 Change 5
Chart 3 Distribution of central government securities holdings issued by sector recorded at market level; HUF billions 14 000 12 000 12 778 12 549 10 000 8 993 9 243 8 000 September 6 000 5 771 5 859 October 4 000 2 000 400 381 565 587 0 Non-financial corporations Financial corporations Central government Households* Rest of world ****** Detailed tables: Time series Methodological notes: Methodological notes MAGYAR NEMZETI BANK DIRECTORATE STATISTICS Contact information: Phone: + 36 (1) 428-2751 Fax: + 36 (1) 429-8000 Email: sajto@mnb.hu 6