7 March 2019 PRESS RELEASE Securities issued by Hungarian residents and breakdown by holding sectors January 2019 According to securities statistics, the amount outstanding of equity securities and debt securities issued by Hungarian residents 1 was HUF 46,747 billion at market value at the end of January 2019, rising by HUF 556 billion relative to the end of December 2018. Within this, the stocks of debt securities and equity securities rose by HUF 135 billion and HUF 422 billion, respectively. The stock of securities held by households and financial corporations increased by HUF 146 billion and HUF 272 billion, respectively, and non-residents securities holdings also rose by HUF 81 billion. Developments in 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; January 2019 Securities Debt securities Opening Transactions Price Foreign Other volume exchange rate Closing Government securities 28 667 149 112-110 0 28 819 61,6% 152 Mortgage bonds 1 295 2 3 0 0 1 300 2,8% 5 Other bonds 1 796 3-2 -24 0 1 774 3,8% -22 Equity and investment fund shares Ratio % Change total 31 758 154 114-134 0 31 893 68,2% 135 Investment fund shares 6 519 29 66-19 0 6 595 14,1% 76 Quoted shares 7 913 20 323-1 4 8 259 17,7% 346 total 14 433 49 389-20 4 14 854 31,8% 422 Total securities 46 191 203 502-153 4 46 747 100,0% 556 The market value of securities issued by the central government rose by HUF 152 billion in January. The stock of forint-denominated securities amounted to HUF 23,257 billion and that of foreign currency-denominated securities to HUF 5,562 billion at the end of the month. Within total holdings, the end-of-month stock of securities classified 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.
into government securities was HUF 28,727 billion and that of bonds, not classified into government securities and issued by other organisations 2 classified into the government sector, was HUF 92 billion. Three security series were issued in the market of long-term forint-denominated government securities in a total value of HUF 66 billion in January. There were no maturities. At the auctions, tap issues amounted to HUF 275 billion and redemptions to HUF 118 billion at nominal value. The balance of sales and redemptions of bonds to households, sold outside of auctions, resulted in an increase in total holdings by HUF 119 billion. In the market of short-term forint-denominated government securities, new issues and tap issues of discount Treasury bills amounted to HUF 287 billion and maturities to HUF 145 billion. The amount of interest-bearing instruments (securities issued to households) was lower than that of maturities: sales and maturities amounted to HUF 333 billion and HUF 423 billion, respectively, at nominal value. Yields on forint-denominated securities fell; price amounted to HUF 65 billion. One euro-denominated foreign currency bond matured in the amount of HUF 275 billion in the market of foreign currency-denominated securities issued by central government in January. Price increased the market value of securities by HUF 47 billion and exchange rate resulted in a decrease of HUF 110 billion. The market value of mortgage bonds issued by resident credit institutions rose by HUF 5 billion during the month under review. There were no new issuances or tap issues in January and redemptions amounted to HUF 1 billion in January. The stock of forint-denominated mortgage bonds amounted to HUF 1,292 billion and that of foreign currency-denominated mortgage bonds to HUF 8 billion at the end of January. The stock of other bonds, issued by other than central government, fell by HUF 22 billion in January. The stock of bonds issued by credit institutions was HUF 1,148 billion and that of bonds issued by other sectors was HUF 626 billion at the end of the month. There were no maturities and new issuances amounted to HUF 2 billion in January. Transactions affected securities issued by credit institutions and non-financial corporations. Exchange rate reduced the value of holdings by HUF 24 billion. In January, the market value of mutual fund shares issued by Hungarian residents rose by HUF 76 billion. Having been transformed into other funds in January, shares issued by money market funds declined by HUF 299 billion and amounted to HUF 77 billion at the end of the month, while shares issued by other funds reached HUF 6,518 billion at the end of the period. The value of new issues was HUF 9 billion and that of maturities was HUF 16 billion in the review month. Price increased the value of holdings by HUF 66 billion, while exchange rate reduced it by HUF 19 billion. The stock of quoted shares issued by resident companies, recorded at market value, rose by HUF 346 billion in the month and amounted to HUF 8,259 billion at the end of January. Within this, shares issued by credit institutions, nonfinancial corporations and the other sectors amounted to HUF 3,228 billion, HUF 4,963 billion and HUF 69 billion, respectively. Prices of blue chips increased, with market capitalisation rising by 4.3 per cent compared with the previous month. The price change caused a significant rise in the value of holdings in the amount of HUF 323 billion in the month. 2 Non-financial corporations and guarantee organisations, classified into the central government sector. 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; January 2019 Holding sectors Opening Transactions Price Foreign Other volume exchange rate Closing Non-financial corporations 1 920 9 26-2 3 1 955 4,2% 36 Financial corporations total 16 625 198 93-20 0 16 897 36,1% 272 Ratio % of which Credit institutions 9 786 309 36-10 0 10 121 21,7% 335 Central government 1 467-10 68 0 0 1 526 3,3% 58 Households* 10 727 70 56-17 0 10 837 23,2% 109 Rest of the world 15 452-64 259-114 0 15 533 33,2% 81 Total 46 191 203 502-153 4 46 747 100,0% 556 Change The total market value of securities amounted to HUF 46,747 billion at the end of January. Here, residents and nonresidents held HUF 31,214 billion (or 66.8%) and HUF 15,533 billion (or 33.2%), respectively. Chart 1 Change in the distribution of securities holdings issued by residents by holding sector in January 2019; HUF billions 300 250 200 150 100 50 0 Quoted shares Investment fund shares Other bonds Mortgage bonds Government securities -50-100 -150 Non-financial corporations Financial corporations Central government Households* Rest of the world 3
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 Nov 2018 Dec 2018 Jan 2019 The decline in holdings by non-residents due to transactions accounted for HUF 64 billion in the month. Within this, their stocks in the market of securities issued by the government sector fell by HUF 71 billion, mainly reflecting the effect of maturities of currency-denominated government bonds. The stocks of quoted shares rose by HUF 16 billion and those of other bonds declined by HUF 9 billion. In January, credit institutions securities holdings rose by HUF 309 billion due to transactions. Within this, their holdings of securities issued by the government sector, other bonds, mutual fund shares, and mortgage bonds rose by HUF 278 billion, HUF 22 billion, HUF 6 billion and HUF 4 billion, respectively. Holdings of securities by households (including non-profit institutions serving households) rose by HUF 70 billion due to transactions in the period under review. Households increased their stock of government securities by HUF 125 billion. Here, their holdings of short-term forint-denominated government securities rose by HUF 12 billion, those of long-term forint-denominated government securities by HUF 106 billion and those of foreign currency-denominated government securities by HUF 7 billion. They also increased their holdings of quoted shares and other bonds by HUF 9 billion and HUF 1 billion, respectively. By contrast, their savings in mutual fund shares declined by HUF 30 billion in January. Stocks of securities held by non-profit institutions serving households fell. In January, the increase in securities held by the household sector continued. Holdings of securities by the financial corporate sector and non-residents also rose relative to the previous month. 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 holdings of securities issued by the central government, recorded at market value, financial corporations holding increased by HUF 205 billion. By contrast, stocks by non-financial corporations, the general government sector and non-residents fell by HUF 33 billion and HUF 9 billion and HUF 92 billion, respectively, in January. Combined holdings of households and non-profit institutions serving households increased by HUF 81 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; January 2019 Holding sectors Opening Transactions Price Foreign Other volume exchange rate Closing Non-financial corporations 355-32 0 0 0 322 1,1% -33 Financial corporations total 12 401 176 37-9 0 12 606 43,7% 205 Ratio % of which Credit institutions 8 467 278 23-6 0 8 763 30,4% 295 Central government 537-10 0 0 0 528 1,8% -9 Households* 6 037 86-2 -3 0 6 118 21,2% 81 Rest of the world 9 337-71 76-97 0 9 245 32,1% -92 Total 28 667 149 112-110 0 28 819 100,0% 152 Change 5
Chart 3 Distribution of central government securities holdings issued by sector recorded at market level; HUF billions 14 000 12 000 12 606 12 401 10 000 9 337 9 245 8 000 December 2018 6 000 6 037 6 118 January 2019 4 000 2 000 0 537 528 355 322 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