ANALYSIS AND COMMENTS MARKET SUMMARY


FINANCIAL MARKET SUMMARY

Selected Financial Instruments
	Outstanding at end	Trans- actions during	Other changes during	Outstanding at end
	Dec Qtr 2008	Mar Qtr 2009	Mar Qtr 2009	Mar Qtr 2009
Selected Financial Instruments	$b	$b	$b	$b
Currency and deposits	1 534.7	2.3	5.3	1 542.3
Short term debt securities	564.6	-52.7	-0.7	511.3
Long term debt securities	1 262.7	-3.2	20.8	1 280.2
Derivatives	401.9	-58.1	-0.7	343.1
Loans and placements	2 449.5	11.9	-0.7	2 460.7
Listed shares	952.6	18.4	-31.1	939.8
Unlisted shares	1 047.2	5.1	-38.9	1 013.5
Reserves of life offices and pension funds	993.3	8.4	-24.6	977.2
General insurance prepayments and reserves	73.8	1.3	0.0	75.1

Deposit liabilities increased to $1,542.3b at the end of March 2009, following transactions of $2.3b during the quarter compared with transactions of $107.5b in the previous quarter. The major contributor was banks which accepted $27.8b (down $31.2b on that accepted last quarter). This was offset by withdrawals of deposits with the central bank, net $33.5b during the quarter.

Short term security liabilities decreased to $511.3b at the end of March 2009. There were net redemptions of $52.7b, comprised of $54.4b in redemptions of one name paper and $1.7b in issuance of bills of exchange. Total long term debt security liabilities increased to $1,280.2b at the end of March 2009, following net redemptions of $3.2b during the quarter. Banks issued bonds worth net $16.5b, of which $4.9b were redeemed domestically and $21.4b issued offshore. Financial intermediaries n.e.c. had net redemptions of $28.2b, of which $26.1b were redeemed in the domestic market and $2.1b were redeemed offshore. Private non-financial corporations issued $6.5b and central borrowing authorities issued $5.5b.

The value of derivative contracts on issue at the end of March 2009 decreased by $58.8b to $343.1b. Components of the decrease were net settlements of $58.1b and valuation decreases of $0.7b.

Loan liabilities rose to $2,460.7b at the end of March 2009, following transactions of $11.9b during the quarter. Households borrowed $14.3b and private non-financial corporations repaid $10.9b.

The listed share market decreased by $12.8b to $939.8b at the end of March 2009, with valuation decreases of $31.2b and issues of $18.4b. Private non-financial corporations issued $13.6b and banks issued $3.8b. The value of the unlisted share market decreased by $33.7b to $1,013.5b at the end of March 2009, with issuance of $5.1b and valuation decreases of $38.8b.

At the end of March 2009, the reserves of life offices and pension funds were $977.2b following transactions during the quarter of $8.4b and valuation decreases of $24.5b. General prepayments and reserves were $75.1b.