ANALYSIS AND COMMENTS MARKET SUMMARY


FINANCIAL MARKET SUMMARY

Selected financial instruments
		Outstanding at end	Transactions during	Other changes during	Outstanding at end
		Jun Qtr 2012	Sep Qtr 2012	Sep Qtr 2012	Sep Qtr 2012
		$b	$b	$b	$b
Currency and deposits
	Currency	57.6	1.4	-	58.9
	Transferable deposits	581.1	8.2	-0.4	589.0
	Other deposits	1 131.9	35.4	-1.7	1 165.6
Short term debt securities
	Bills of exchange	122.9	-2.0	-	120.9
	One name paper	347.7	-22.9	-2.6	322.2
Long term debt securities
	Bonds, etc.	1 636.3	65.0	8.6	1 709.9
Derivatives
	Derivatives	397.9	-45.2	50.1	402.7
Loans and placements
	Short term	322.1	-3.2	-0.5	318.5
	Long term	2 486.7	30.9	1.4	2 519.1
Shares and other equity
	Listed	1 162.7	6.2	70.9	1 239.8
	Unlisted	1 757.4	14.7	43.1	1 815.2
Insurance technical reserves
	Reserves of pension funds and life offices	1 436.7	27.3	29.9	1 493.9
	General insurance prepayments and reserves	95.7	1.8	-	97.4
- nil or rounded to zero (including null cells)

Currency liabilities increased to $58.9b at the end of September 2012, following transactions of $1.4b during the quarter compared with transactions of $0.4b for June 2012. Deposit liabilities increased to $1,754.6b at the end of September 2012, following transactions of $43.6b during the quarter compared with the transactions of $40.1b in the previous quarter. The major contributor was the banks which accepted $44.9b. This was partially offset by the central bank which decreased by $1.0b.

Short term debt security liabilities decreased to $443.1b at the end of September 2012, following maturities of $24.9b. Total long term debt security liabilities increased to $1,709.9b at the end of September 2012, following net issuance of $65.0b during the quarter. Securitisers issued bonds worth $22.7b, of which $24.1b was issued domestically and $1.4b matured offshore. National general government issued bonds worth $13.4b, of which $13.5b was issued domestically with $0.1b in offshore bonds maturing. Banks issued bonds worth $8.5b, of which $16.3b was issued offshore and this was partly offset by $7.8b of domestic bonds maturing. Other private non-financial corporations issued bonds worth $8.0b, of which $0.2b were issued domestically and $7.8b were issued offshore. Central borrowing authorities issued bonds worth $6.5b, of which $7.2b was issued in the domestic market and $0.8b in offshore bonds maturing.

The value of derivative contracts on issue at the end of September 2012 increased by $4.8b to $402.7b. Net settlements were -$45.2b for the quarter of which the major contributors were banks -$16.8b and rest of world -$13.2b. This was offset by valuation increases of $50.0b.

Loan liabilities rose to $2,837.6b at the end of September 2012, following transactions of $27.7b during the quarter. Households borrowed $9.0b, other private non-financial corporations borrowed $8.3b and state and local general government borrowed $6.5b.

The listed share market increased by $77.1b to $1,239.8b at the end of September 2012, with net issuances of $6.2b and valuation increases of $70.9b. The major contributors to the issuances was other private non-financial corporations which issued $5.6b. The value of the unlisted share market increased by $57.8b to $1,815.2b at the end of September 2012, with net issuance of $14.7b and valuation increases of $43.1b. The major contributors of the issuance were rest of world which issued $7.1b and other private non-financial corporations which issued $5.3b.

At the end of September 2012, the insurance technical reserves of life offices and pension funds were $1,494.0b following transactions during the quarter of $27.2b and valuation increases of $30.1b. General insurance prepayments and reserves were $97.4b following transactions during the quarter of $1.8b.