ANALYSIS AND COMMENTS MARKET SUMMARY


FINANCIAL MARKET SUMMARY

Selected Financial Instruments
	Outstanding at end	Trans- actions during	Other changes during	Outstanding at end
	Jun Qtr 2008	Sep Qtr 2008	Sep Qtr 2008	Sep Qtr 2008
Selected Financial Instruments	$b	$b	$b	$b
Currency and deposits	1 338.7	58.4	18.8	1 415.8
Short term debt securities	625.6	7.8	1.8	635.1
Long term debt securities	993.2	-29.3	84.6	1 048.5
Derivatives	342.6	-8.8	24.8	358.6
Loans and placements	2 752.7	75.7	23.0	2 851.3
Listed shares	1 342.8	18.3	-183.6	1 177.5
Unlisted shares	1 163.4	18.4	-52.1	1 129.8
Reserves of life offices and pension funds	1 133.9	12.7	-59.1	1 087.4
General insurance prepayments and reserves	68.6	2.6	0.0	71.2

Deposit liabilities increased to $1,415.8b at the end of September 2008, following transactions of $58.4b during the quarter compared with transactions of $53.2b in the previous quarter. The major contributors were banks which accepted $46.4b (up $15.3b on the previous quarter) and the central bank which accepted $6.6b (down $8.6 on the previous quarter). Domestic sectors deposited a net $2.5b with the rest of the world, of which deposits by banks were $7.8b and withdrawals by the central bank were $4.3b.

Short term security liabilities increased to $635.1b at the end of September 2008. There were net issuances of $7.8b, made up of $2.0b in issues of bills of exchange and $5.8b in one name paper. Total long term debt security liabilities increased to $1,048.5b at the end of September 2008, following net redemptions of $29.3b during the quarter. Banks redeemed net $9.7b of bonds offshore and issued net $1.3b domestically, to give total redemptions of net $8.5b. Financial intermediaries n.e.c., rest of the world, national general government, and private non-financial corporations redeemed net $14.6b, $3.2b, $2.9b and $2.7b respectively whereas central borrowing authorities issued net $2.7b.

Derivative contracts on issue increased by $16.0b to $358.6b. Components of the increase were net settlements of $8.8b and valuation increases of $24.8b.

Loan liabilities rose by $98.6b to $2,851.3b following transactions of $75.7b. Non-financial corporations borrowed $38.4b; banks, $24.3b; households, $11.5b; and rest of the world, $9.6b. These were offset by the repayment by financial intermediaries n.e.c, $9.9b.

The listed share market decreased by $165.3b to $1,177.5b, with valuation decreases of $183.6b and net issues of $18.3b. Private non-financial corporations issued net $11.4b, banks net $5.5b and financial Intermediaries n.e.c. net $1.4b. The unlisted share market decreased by $33.7b to $1,129.8b, with issues of $18.4b and valuation decreases of $52.0b. Rest of the world issued net $11.3b, private non-financial corporations net $7.7b, and financial intermediaries n.e.c. bought back net $2.3b during the quarter.

At the end of September 2008, the reserves of life offices and pension funds were $1,087.4b following transactions during the quarter of $12.7b and valuation decreases of $59.2b. Other insurance corporation prepayments and reserves were $71.2b.


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