11 December 2017 PRESS RELEASE Securities issued by Hungarian residents and breakdown by holding sectors October 2017 According to securities statistics, the amount outstanding of equity securities and debt securities issued by Hungarian residents 1 was HUF 44,926 billion at market value at the end of October 2017, reflecting a significant increase of HUF 917 billion relative to the end of September. Within this, holdings of debt securities increased by HUF 251 billion and those of equity securities by HUF 666 billion. Holdings of securities by households, the holdings of financial corporations and non-residents securities holdings increased by HUF 170 billion, HUF 322 billion and HUF 264 billion, respectively. 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; October 2017 Securities Debt securities Opening Transactions Price Foreign Other volume exchange rate Closing Government securities 27 438 193-26 61 0 27 666 61,6% 229 Mortgage bonds 951-10 -1 0 0 940 2,1% -11 Other bonds 2 073 27-1 9 0 2 107 4,7% 34 Equity and investment fund shares Ratio % Change total 30 462 210-29 70 0 30 713 68,4% 251 Investment fund shares 6 099 128 25 6 0 6 257 13,9% 158 Quoted shares 7 448 3 505 0 0 7 956 17,7% 508 total 13 548 131 530 6 0 14 213 31,6% 666 Total securities 44 010 340 501 76 0 44 926 100,0% 917 The market value of securities issued by the central government rose by HUF 229 billion in October. The stock of forint-denominated securities amounted to HUF 21,284 billion and that of foreign currency-denominated securities to HUF 6,382 billion at the end of the month. 6 new security series were issued in the market of long-term forint-denominated government securities in a total value of HUF 65 billion in October. In the primary market, tap issues amounted to HUF 155 billion at nominal value. There was no redemption in the month. Net sales of bonds to households resulted in a rise in total holdings by HUF 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.
94 billion. In the market of short-term forint-denominated government securities, new issues and tap issues of discount Treasury bills amounted to HUF 107 billion and maturities to HUF 162 billion. The amount of securities issued to households was higher than that of maturities: sales and maturities reached HUF 361 billion and HUF 304 billion, respectively, at nominal value. Yields on forint-denominated securities remained broadly unchanged: the price change amounted to HUF -4 billion. In the market of foreign currency-denominated securities issued by central government USD-denominated bonds were redeemed within a bond exchange transaction in October. After the transaction had been closed eurodenominated bonds of the same volume were sold. One Japanese yen-denominated bond matured: its value was HUF 54 billion. Price reduced the value of holdings by HUF 22 billion and exchange rate increased it by HUF 61 billion. The market value of mortgage bonds issued by resident credit institutions fell by HUF 11 billion in the month under review. There were two redemptions affecting two bonds in a total value of HUF 8 billion. The stock of forintdenominated mortgage bonds amounted to HUF 928 billion and that of foreign currency-denominated mortgage bonds to HUF 12 billion at the end of October. The market value of other bonds, issued by other than the central government, rose by HUF 34 billion. The stock of forint and foreign currency-denominated bonds amounted to HUF 550 billion and HUF 1,557 billion, respectively, at the end of the month. In October, the amounts of issues were HUF 24 billion, tap issues amounted to HUF 13 billion, while maturities and redemptions to HUF 9 billion. The transactions were related to credit institutions and the nonfinancial corporate sector. In October, the market value of mutual fund shares issued by Hungarian residents rose by HUF 158 billion. Shares issued by money market funds amounted to HUF 529 billion and those issued by other funds to HUF 5,728 billion at the end of the period. The value of new issues was HUF 15 billion and that of maturities was HUF 20 billion. Price increased the value of holdings by HUF 25 billion and exchange rate by HUF 6 billion in October. Market capitalisation of quoted shares issued by resident companies rose significantly by HUF 508 billion in the month basically reflecting the price, and amounted to HUF 7,956 billion at the end of October. Within this, shares issued by credit institutions, non-financial corporations and the other sectors amounted to HUF 3,043 billion, HUF 4,882 billion and HUF 31 billion, respectively. Prices of most blue chips increased significantly: market capitalisation rose by 7 per cent compared with the previous month. The price change caused a rise in the value of holdings in the amount of HUF 505 billion in 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 2017 Holding sectors Opening Transactions Price Foreign Other volume exchange rate Closing Ratio % Change Non-financial corporations 1 558-15 77 0 0 1 620 3,6% 63 Financial corporations total 15 678 261 55 6 0 15 999 35,6% 322 of which Credit institutions 9 603 259 2 2 0 9 866 22,0% 263 Central government 1 529 31 46 0 0 1 605 3,6% 77 Households* 9 612 118 70 4 0 9 803 21,8% 191 Rest of the world 15 634-55 253 66 0 15 898 35,4% 264 Total 44 010 340 501 76 0 44 926 100,0% 917 The total market value of securities holdings rose for all holding sectors and amounted to HUF 44,926 billion at the end of October. Here, residents and non-residents held HUF 29,028 billion (or 64.6%) and HUF 15,898 billion (or 35.4%), respectively. Chart 1 Change in the distribution of securities holdings issued by residents by holding sector in October 2017; HUF billions 350 300 250 200 150 100 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
Oct 2015 Nov 2015 Dec 2015 Jan 2016 Feb 2016 Mar 2016 Apr 2016 May 2016 Jun 2016 Jul 2016 Aug 2016 Sep 2016 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 In October, the decline in holdings by non-residents due to transactions accounted for HUF 55 billion. The sector s holdings in the market of securities issued by the government sector fell by HUF 79 billion due to transactions, fundamentally reflecting the effect of a decrease in holdings of forint-denominated long-term securities. They increased their holdings of quoted shares, mutual fund shares and other bonds by HUF 16 billion, HUF 5 billion and HUF 4 billion in the months. In October, credit institutions securities holdings rose by HUF 259 billion due to transactions. Within that, their holdings of securities issued by the government sector, of other bonds and of mortgage bonds increased by HUF 243 billion, HUF 15 billion and HUF 1 billion, respectively. Holdings of securities by households (including non-profit institutions serving households) increased in the period. Transactions accounted for HUF 118 billion of the HUF 191 billion increase in holdings. Households raised their holdings of government securities by HUF 109 billion. Here, their holdings of long-term forint-denominated securities, short-term forint-denominated securities and foreign currency-denominated securities rose by HUF 47 billion, HUF 60 billion and HUF 2 billion, respectively. They also increased their holdings of mutual fund shares by HUF 6 billion, while they decreased their holdings of quoted shares and other bonds by HUF 13 billion and HUF 5 billion, respectively. Holdings of securities by non-profit institutions serving households rose in the month. In October, the rise in the market value of securities held by households continued. Holdings of securities by financial corporations and non-residents share thereof also 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 holdings of securities issued by the central government, recorded at market value, nonresidents and non-financial corporations holdings fell by HUF 37 billion and HUF 72 billion, respectively, in October. By contrast, holdings of the financial corporate sector and the general government sector increased by HUF 193 billion and HUF 30 billion respectively. The combined holdings of households and non-profit institutions serving households increased by HUF 114 billion. Table 3 Distribution of securities holdings issued by central government in a breakdown by holding sector; at market value; HUF billions; October 2017 Holding sectors Opening Transactions Price Foreign Other volume exchange rate Closing Non-financial corporations 352-72 0 0 0 280 1,0% -72 Financial corporations total 12 095 196-6 3 0 12 288 44,4% 193 Ratio % of which Credit institutions 8 405 242-6 2 0 8 643 31,2% 239 Central government 559 31-1 0 0 590 2,1% 30 Households* 4 991 117-3 1 0 5 106 18,5% 114 Rest of the world 9 440-79 -16 58 0 9 403 34,0% -37 Total 27 438 193-26 61 0 27 666 100,0% 229 Change 5
Chart 3 Distribution of central government securities holdings issued by sector recorded at market level; HUF billions 14 000 12 000 12 288 12 095 10 000 9 440 9 403 8 000 September 6 000 4 991 5 106 October 4 000 2 000 0 559 590 352 280 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