ANALYSIS AND COMMENTS MARKET SUMMARY


FINANCIAL MARKET SUMMARY

Selected financial instruments
		Outstanding at end	Transactions during	Other changes during	Outstanding at end
		Mar Qtr 2013	Jun Qtr 2013	Jun Qtr 2013	Jun Qtr 2013
		$b	$b	$b	$b
Currency and deposits
	Currency	61.2	-0.2	-	61.0
	Transferable deposits	505.2	7.9	2.1	515.3
	Other deposits	1 244.6	-10.7	14.7	1 248.6
Short term debt securities
	Bills of exchange	114.8	-3.3	-	111.5
	One name paper	334.7	11.3	4.6	350.7
Long term debt securities
	Bonds, etc.	1 725.7	24.4	31.8	1 781.8
Derivatives
	Derivatives	330.3	-4.9	117.3	442.6
Loans and placements
	Short term	260.4	-1.7	2.3	261.0
	Long term	2 571.4	53.3	11.5	2 636.2
Shares and other equity
	Listed	1 407.6	5.8	-65.9	1 347.5
	Unlisted	1 926.4	-0.9	44.4	1 969.9
Insurance technical reserves
	Reserves of pension funds and life offices	1 620.8	36.5	-1.9	1 655.5
	General insurance prepayments and reserves	97.2	0.1	-	97.3
- nil or rounded to zero (including null cells)

Currency liabilities decreased to $61.0b at the end of June 2013, following transactions of -$0.2b during the quarter compared with transactions of -$2.0b for March 2013. Deposit liabilities increased to $1,763.9b at the end of June 2013, following transactions of -$2.8b during the quarter compared with the transactions of $5.3b in the previous quarter. The major contributor was other depository corporations which decreased $6.8b and rest of world $4.0b. This was offset by the banks and the central bank which accepted $2.7b and $5.4b respectively.

Short term debt security liabilities increased to $462.2b at the end of June 2013, following issuance of $8.0b. Total bonds liabilities increased to $1,781.8b at the end of June 2013, following net issuance of $24.4b during the quarter. Securitisers issued bonds worth $18.0b, of which $18.6b was issued domestically and $0.7b of offshore bonds matured. Rest of the World issued bonds worth $5.3b, of which $3.1b was issued domestically and $2.2b issued offshore. National general government issued bonds worth $4.7b, of which $2.5b were issued domestically and $2.1b were issued offshore. Other private non-financial corporations issued bonds $3.8b, $1.0b was issued domestically and $2.8b was issued offshore. Banks' matured bonds worth $5.9b, of which $5.7b matured domestically and $0.2b matured offshore.

The value of derivative contracts on issue at the end of June 2013 increased by $112.3b to $442.6b. Net settlements were $4.9b for the quarter of which the major contributors were banks $4.0b. Growth was mainly due to valuation increases of $117.2b.

Loan liabilities rose to $2,897.2b at the end of June 2013, following transactions of $51.6b during the quarter. Households borrowed $22.9b, other private non-financial corporations borrowed $15.1b, rest of world borrowed $8.1b and state and local general government borrowed $6.9b. The central borrowing authorities repaid $4.3b.

The listed share market decreased by $60.1b to $1,347.5b at the end of June 2013, with net issuances of $5.8b and valuation decreases of $65.9b. The major contributors to the issuances were other private non-financial corporations which issued $2.3b, private non-financial investment funds which issued $1.6b, and non-money market investment funds which issued $1.2b. The value of the unlisted share market increased by $43.5b to $1,969.9b at the end of June 2013, with net buy backs of $0.9b and valuation increases of $44.4b. The major contributors to the buy backs was rest of world which repurchased $7.0b and money market investment funds which repurchased $2.1b. This was offset by non-money market investment funds issuance of $8.2b.

At the end of June 2013, the insurance technical reserves of life offices and pension funds were $1,655.4 following transactions during the quarter of $36.5b and valuation decreases of $2.0b. General insurance prepayments and reserves were $97.3b following transactions during the quarter of $0.1b.