ANALYSIS AND COMMENTS MARKET SUMMARY


FINANCIAL MARKET SUMMARY

Selected financial instruments
		Outstanding at end	Transactions during	Other changes during	Outstanding at end
		Dec Qtr 2011	Mar Qtr 2012	Mar Qtr 2012	Mar Qtr 2012
		$b	$b	$b	$b
Currency and deposits
	Currency	59.7	-2.5	-	57.2
	Transferable deposits	602.6	-16.7	0.3	586.1
	Other deposits	1 070.6	20.1	-3.8	1 086.9
Short term debt securities
	Bills of exchange	124.6	-0.5	-0.1	124.0
	One name paper	341.6	6.2	1.1	348.9
Long term debt securities
	Bonds, etc.	1 561.8	54.7	7.9	1 624.4
Derivatives
	Derivatives	343.6	-42.0	17.8	319.4
Loans and placements
	Short term	319.3	-1.1	0.8	319.0
	Long term	2 406.8	34.3	-9.9	2 431.2
Shares and other equity
	Listed	1 153.4	5.8	85.6	1 244.8
	Unlisted	1 442.7	7.9	34.6	1 485.2
Insurance technical reserves
	Reserves of pension funds and life offices	1 334.7	22.2	50.3	1 407.2
	General insurance prepayments and reserves	91.8	-0.4	-	91.4
- nil or rounded to zero (including null cells)

Currency liabilities decreased to $57.2b at the end of March 2012, following transactions of -$2.5b during the quarter compared with transactions of $3.8b for December 2011. Deposit liabilities stayed relatively constant at $1,673.0b at the end of March 2012, following transactions of $3.4b during the quarter compared with the transactions of -$6.6b in the previous quarter. The major contributor was the Banks which accepted $12.8b. This was partially offset by other depository corporations which decreased by $12.1b.

Short term debt security liabilities increased to $472.9b at the end of March 2012, following issuances worth of $5.7b. Total long term debt security liabilities increased to $1,624.4b at the end of March 2012, following net issuance of $54.7b during the quarter. Securitisers issued bonds worth $26.0b, of which $27.7b issued domestically and $1.7b matured offshore. Central Borrowing Authorities issued bonds worth $11.2b, of which $18.2b was issued in the domestic market with $7.1b in offshore bonds maturing. Rest of world issued bonds worth $7.0b, of which $1.4b was issued domestically and $5.6b was issued offshore. Banks issued bonds worth $5.1b, of which $10.0b were domestic bonds issued and $5.0b of offshore bonds matured. Other private non-financial corporations issued bonds worth $3.5b, of which $2.5b were issued domestically and $1.0b were issued offshore.

The value of derivative contracts on issue at the end of March 2012 decreased by $24.2b to $319.4b. The major component of this decrease was net settlements of -$42.0b for the quarter of which the major contributors were banks of $21.1b and rest of world of $8.3b. This was offset by valuation increases of $17.8b.

Loan liabilities rose to $2,750.2b at the end of March 2012, following transactions of $33.2b during the quarter. Households borrowed $13.0b, other private non-financial corporations borrowed $11.1b, and banks borrowed $2.1b.

The listed share market increased by $91.4b to $1,244.8b at the end of March 2012, with net issuance of $5.8b and valuation increases of $85.6b. The major contributors to the issuance was other private non-financial corporations which issued $4.2b. The value of the unlisted share market increased by $42.5b to $1,485.2b at the end of March 2012, with net issuance of $7.9b and valuation increases of $34.6b. The major contributors of the issuance were rest of world which issued $5.7b and other private non-financial corporations, which issued $3.0b. Non money market investment funds bought back $1.6b during the quarter.

At the end of March 2012, the insurance technical reserves of life offices and pension funds were $1,407.3b following transactions during the quarter of $22.2b and valuation increases of $50.4b. General insurance prepayments and reserves were $91.4b.