10 June 2016 PRESS RELEASE Securities issued by Hungarian residents and breakdown by holding sectors April 2016 According to securities statistics data, the amount outstanding of equity securities and debt securities issued by Hungarian residents 1 was HUF 41,016 billion at market value at the end of April 2016, rising by HUF 291 billion relative to the end of March. Within this, holdings of debt securities rose by HUF 186 billion and those of equity securities by HUF 105 billion. Households and financial corporations increased their securities holdings by HUF 43 billion and HUF 6 billion, respectively. Non-residents increased their securities holdings by HUF 119 billion during the month. 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; April 2016 Securities Debt securities Opening Transactions Price Foreign Other volume exchange rate Closing Government securities 25 854 310-193 -60 0 25 911 63,2% 57 Mortgage bonds 947-51 0-3 0 893 2,2% -54 Other bonds 2 707 201-1 -15-1 2 890 7,0% 183 Equity and investment fund shares Ratio % Change total 29 508 459-195 -77-1 29 694 72,4% 186 Investment fund shares 5 701 40-11 -7 0 5 723 14,0% 22 Quoted shares 5 516 0 83 0 0 5 599 13,7% 84 total 11 217 40 72-7 0 11 322 27,6% 105 Total securities 40 725 499-123 -84-1 41 016 100,0% 291 The market value of securities issued by central government rose by HUF 57 billion in April, amounting to HUF 25,911 billion. Within this, the stock of forint-denominated securities amounted to HUF 18,346 billion and those of foreign currency-denominated securities to HUF 7,565 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: https://www.mnb.hu/letoltes/ertekpapirmodszertan-en.pdf.
In the market of long-term forint-denominated government securities, two new series were issued in a total amount of HUF 17 billion. In the primary market, tap issues amounted to HUF 246 billion and redemptions to HUF 140 billion at nominal value. Within this, sales of bonds to households amounted to HUF 35 billion and redemptions to HUF 1 billion. In the market of short-term forint-denominated government securities, new issues and tap issues of discount Treasury bills amounted to HUF 269 billion and maturities to HUF 358 billion. The amount of securities issued to households continued to be significant in the month, with sales amounting to HUF 314 billion and maturities to HUF 166 billion at nominal value. Yields on forint-denominated securities generally rose, which resulted in a HUF -165 billion price change during the month. In the market of foreign currency-denominated securities issued by central government, one Chinese yuandenominated bond was issued in the amount of HUF 42 billion and other domestic foreign currency-denominated bonds were sold in the amount of HUF 13 billion. Price and exchange rate reduced the market value of securities by HUF 27 billion and HUF 60 billion, respectively. The market value of mortgage bonds issued by resident credit institutions amounted to HUF 893 billion at the end of the month, down HUF 54 billion relative to the end of March. Within this, the stocks of forint and foreign currency-denominated mortgage bonds amounted to HUF 566 billion and HUF 327 billion, respectively. One bond was issued in the amount of HUF 6 billion and one bond was redeemed in the amount of HUF 56 billion. In addition to these, transactions reflected accruals of interest payments. The market value of other bonds, not classified into government securities, rose by HUF 183 billion in April, with the effect of transactions accounting for HUF 201 billion. The stock of forint and foreign currency-denominated bonds amounted to HUF 852 billion and HUF 2,038 billion, respectively, at the end of the month. In April, three new bonds were issued in the total amount of HUF 241 billion and 13 bonds matured in a total value of HUF 19 billion. On the issuer side, the new issues in the month basically affected non-financial corporations and maturities affected the banking sector. In April, the market value of mutual fund shares issued by resident investment funds rose by HUF 22 billion to HUF 5,723 billion at the end of the period. Within this, shares issued by money market funds accounted for HUF 1,025 billion and those issued by other funds for HUF 4,698 billion. Sixteen new mutual fund shares were issued and two matured in the month. The value of new issues was HUF 16 billion and that of maturities was HUF 4 billion. In addition to transactions, price and exchange rate reduced the forint value of shares by HUF 11 billion and HUF 7 billion, respectively. Market capitalisation of quoted shares issued by resident companies rose by HUF 84 billion in April to HUF 5,599 billion at the end of the month. Within this, shares issued by credit institutions, non-financial corporations and other sectors, respectively, amounted to HUF 2,057 billion, HUF 3,517 billion and HUF 25 billion. Equity turnover in the BSE fell slightly relative to the previous month. The prices of blue chips generally rose, resulting in a HUF 83 billion price change. Market capitalisation rose by over 1.5% compared with the previous 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; April 2016 Holding sectors Opening Transactions Price Foreign Other volume exchange rate Closing Non-financial corporations 1 286 41 13-2 0 1 339 3,3% 53 Financial corporations total 14 735 115-93 -15-1 14 741 35,9% 6 Ratio % of which Credit institutions 8 939 48-58 -8-1 8 920 21,7% -19 Central government 1 011 67-3 0 0 1 075 2,6% 64 Households* 8 248 61-5 -7 0 8 297 20,2% 50 Rest of the world 15 445 216-36 -61 0 15 564 37,9% 119 Total 40 725 499-123 -84-1 41 016 100,0% 291 Change The market value of total securities holdings rose by HUF 291 billion to HUF 41,016 billion at the end of the month, accompanied by divergent in holdings by the individual sectors. Here, residents held HUF 25,453 billion (or 62.1%) and non-residents HUF 15,564 billion (or 37.9%). In April, holdings of securities by every sector increased, except those of credit institutions. Chart 1 Change in the distribution of securities holdings issued by residents by holding sector in April 2016; 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
Apr 2014 May 2014 Jun 2014 Jul 2014 Aug 2014 Sep 2014 Oct 2014 Nov 2014 Dec 2014 Jan 2015 Feb 2015 Mar 2015 Apr 2015 May 2015 Jun 2015 Jul 2015 Aug 2015 Sep 2015 Oct 2015 Nov 2015 Dec 2015 Jan 2016 Feb 2016 Mar 2016 Apr 2016 The increase in non-residents securities holdings due to transactions, at HUF 216 billion, accounted for a significant share of the change in their holdings. In April, non-residents were buyers in the market of securities issued by the government sector, with their holdings rising by HUF 30 billion due to transactions. Within this, non-residents preferred buying long-term foreign currency-denominated securities, although their short and long-term forintdenominated securities holdings also rose. They increased their holdings in the market of quoted shares by HUF 16 billion and purchased other foreign currency-denominated bonds in the amount of HUF 161 billion. The sector s holdings of mutual fund shares rose by HUF 8 billion. Credit institutions reduced their securities holdings by HUF 19 billion in April, with the effect of transactions amounting to HUF 48 billion. Within this, their holdings of securities issued by the government sector rose by HUF 55 billion. Purchases contributed HUF 16 billion to their holdings of other bonds. By contrast, their holdings of mortgage bonds fell by HUF 22 billion due to transactions. Price reduced the sector s holdings by 58 billion during the month. Holdings of securities by households (including non-profit institutions serving households) rose by HUF 50 billion in the period, with transactions amounting to HUF 61 billion. Purchases by households increased their holdings of government securities by HUF 75 billion. Here, they preferred buying short-term government securities, with their holdings increasing by HUF 41 billion. As seen in the previous month, households were net buyers of mutual fund shares, with their holdings rising by HUF 6 billion due to transactions. Households reduced their holdings of other securities: holdings of quoted shares and other bonds fell equally, by HUF 9 billion. Holdings of securities by nonprofit institutions serving households rose slightly in April. The longer-term increase in the market value of securities held by households continued in April. Holdings of securities by financial corporations also continued to rise. The share of non-residents rose again in April following several months of decline. 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 holdings of securities issued by central government, recorded at market value, non-resident holdings of government securities fell by HUF 115 billion in April. By contrast, government securities held by financial corporations rose by HUF 21 billion during the month. Here, holdings by credit institutions fell slightly. Money market funds and other funds made large purchases, but insurance corporations and pension funds reduced their holdings. Households and the general government sector also increased their holdings of government securities in the month. Table 3 Distribution of securities holdings issued by central government in a breakdown by holding sector; at market value; HUF billions; April 2016 Holding sectors Opening Transactions Price Foreign Other volume exchange rate Closing Non-financial corporations 298 17-1 -1 0 314 1,2% 15 Financial corporations total 11 211 120-91 -8 0 11 231 43,3% 21 Ratio % of which Credit institutions 7 526 55-59 -5 0 7 517 29,0% -9 Central government 243 67 0 0 0 310 1,2% 67 Households* 3 748 75-5 -2 0 3 817 14,7% 69 Rest of the world 10 354 30-96 -49 0 10 239 39,5% -115 Total 25 854 310-193 -60 0 25 911 100,0% 57 Change 5
Chart 3 Distribution of central government securities holdings issued by sector; HUF billions 12 000 10 000 8 000 6 000 March April 4 000 2 000 0 Non-financial corporations Financial corporations Central government Households* Rest of world * * * * * Detailed tables: Table set Methodology: Methodological notes MAGYAR NEMZETI BANK DIRECTORATE STATISTICS Contact information: Phone: + 36 (1) 428-2751 Fax: + 36 (1) 429-8000 Email: sajto@mnb.hu 6