ANALYSIS AND COMMENTS MARKET SUMMARY


FINANCIAL MARKET SUMMARY

Selected financial instruments
		Outstanding at end	Transactions during	Other changes during	Outstanding at end
		Mar Qtr 2014	Jun Qtr 2014	Jun Qtr 2014	Jun Qtr 2014
		$b	$b	$b	$b
Currency and deposits
	Currency	64.1	0.5	-	64.6
	Transferable deposits	630.9	3.9	-0.3	634.4
	Other deposits	1 313.6	21.1	-3.1	1 331.6
Short term debt securities
	Bills of exchange	99.0	-3.9	-	95.2
	One name paper	370.3	23.7	-1.1	392.9
Long term debt securities
	Bonds, etc.	1 919.0	24.5	12.1	1 955.6
Derivatives
	Derivatives	356.6	-81.0	72.8	348.4
Loans and placements
	Short term	279.2	-1.8	-0.5	276.9
	Long term	2 914.3	91.4	2.1	3 007.7
Shares and other equity
	Listed	1 547.2	17.4	-6.1	1 558.4
	Unlisted	2 461.5	21.4	11.4	2 494.3
Insurance technical reserves
	Reserves of pension funds and life offices	1 759.5	36.7	-17.5	1 778.7
	General insurance prepayments and reserves	62.3	4.4	-	66.7
- nil or rounded to zero (including null cells)

Currency liabilities increased to $64.6b at the end of June 2014, following transactions of $0.5b during the quarter compared with transactions of -$2.8b for March 2014. Total deposit liabilities increased to $1,966.0b at the end of June quarter 2014, following transactions of $25.0b during the quarter compared with transactions of $27.1b in the previous quarter. The major contributor to the change in levels was banks which increased by $38.6b, offset by the central bank which decreased by $6.9b.

Short term debt security liabilities increased to $488.1b at the end of the June quarter 2014, following issuance of $19.8b. Total bonds liabilities increased to $1,955.6b at the end of June 2014, following net issuance of $24.5b during the quarter. Banks issued bonds worth $13.8b, of which $10.3b was issued domestically and $3.5b was issued offshore. Securitisers issued bonds worth $8.4b, of which $8.5b was issued domestically and $0.1b matured offshore. Central borrowing authorities issued bonds worth $3.1b, of which $3.5b was issued domestically and $0.4b matured offshore.

The value of derivative contracts on issue at the end of June 2014 decreased by $8.2b to $348.4b. Net settlements were $81.0b for the quarter of which the major contributors were banks –$52.8b and the rest of the world –$21.4b.

Loan liabilities rose to $3,284.6b at the end of June 2014, following transactions of $89.6b during the quarter. Households borrowed $36.9b, other private non–financial corporations borrowed $22.7b and the rest of world borrowed $16.7b.

The listed share market increased by $11.2b to $1,558.4b at the end of June 2014, with net issuances of $17.4b and valuation decreases of $6.2b. The major contributors to the issuances were other private non-financial corporations, $10.5b, banks, $3.8b and non-life insurance corporations, $2.1b. The unlisted share market increased by $32.8b to $2,494.3b at the end of June 2014, with net issuances of $21.4b and valuation increases of $11.4b. The major contributors to the issuances were the rest of world which issued $8.9b and other private non-financial corporations which issued $5.9b. The increase in central bank was $8.8b.

At the end of June 2014, the insurance technical reserves of life offices and pension funds were $1,778.7b, following transactions during the quarter of $36.7b and valuation decreases of $17.5b. General insurance prepayments and reserves were $66.7b following transactions during the quarter of $4.4b.