ANALYSIS AND COMMENTS MARKET SUMMARY


FINANCIAL MARKET SUMMARY

Selected financial instruments
		Outstanding at end	Transactions during	Other changes during	Outstanding at end
		Sep Qtr 2013	Dec Qtr 2013	Dec Qtr 2013	Dec Qtr 2013
		$b	$b	$b	$b
Currency and deposits
	Currency	62.8	4.7	-	67.5
	Transferable deposits	546.8	55.9	0.2	602.9
	Other deposits	1 291.7	5.1	7.7	1 304.5
Short term debt securities
	Bills of exchange	107.7	-4.4	-	103.3
	One name paper	340.3	-6.3	1.4	335.4
Long term debt securities
	Bonds, etc.	1 819.0	68.3	7.3	1 894.6
Derivatives
	Derivatives	349.0	-36.5	108.3	420.8
Loans and placements
	Short term	263.6	-4.3	0.2	259.5
	Long term	2 754.4	62.8	10.9	2 828.1
Shares and other equity
	Listed	1 471.3	17.7	34.7	1 523.7
	Unlisted	2 141.8	39.1	47.2	2 228.0
Insurance technical reserves
	Reserves of pension funds and life offices	1 736.1	35.3	29.5	1 800.9
	General insurance prepayments and reserves	99.3	-0.6	-	98.7
- nil or rounded to zero (including null cells)

Currency liabilities increased to $67.5b at the end of December 2013, following transactions of $4.7b during the quarter compared with transactions of $1.7b for September 2013. Deposit liabilities increased to $1,907.4b at the end of December 2013, following transactions of $61.0b during the quarter compared with transactions of $57.5b in the previous quarter. The major contributors were banks which increased by $38.5b and the central bank which increased by $29.0b. This was offset by other depository corporations which decreased by $6.2b.

Short term debt security liabilities decreased to $438.7b at the end of the December quarter 2013, following maturities of $10.7b. Total bonds liabilities increased to $1,894.6b at the end of December 2013, following net issuance of $68.3b during the quarter. Securitisers issued bonds worth $17.2b, of which $18.0b was issued domestically and $0.8b matured offshore. The national general government issued bonds worth $16.3b, of which $16.4b was issued domestically and $0.1b matured offshore. Central borrowing authorities issued bonds worth $3.8b, of which $4.3b was issued domestically and $0.5b matured offshore. Other private non-financial corporations issued bonds worth $3.7b, of which $1.1b was issued domestically and $2.6b was issued offshore.

The value of derivative contracts on issue at the end of December 2013 increased by $71.7b to $420.8b. Net settlements were $36.5b for the quarter of which the major contributors were banks -$21.3b, other depository corporations -$6.7b and rest of the world -$4.8b.

Loan liabilities rose to $3,087.6b at the end of December 2013, following transactions of $58.5b during the quarter. Households borrowed $27.4b, rest of world borrowed $13.1b, other private non-financial corporations borrowed $12.3b and banks borrowed $4.9b.

The listed share market increased by $52.4b to $1,523.7b at the end of December 2013, with net issuances of $17.7b and valuation increases of $34.7b. The major contributors to the issuances were other private non-financial corporations which issued $9.7b, non-life insurance corporations which issued $2.2b, private non-financial investment funds which issued $2.1b and banks which issued $1.8b. The unlisted share market increased by $86.3b to $2,228.0b at the end of December 2013, with net issuances of $39.1b and valuation increases of $47.2b. The major contributors to the issuances were rest of world which issued $20.8b, other private non-financial corporations which issued $8.3b and non-money market investment funds which issued $6.5b.

At the end of December 2013, the insurance technical reserves of life offices and pension funds were $1,800.9b following transactions during the quarter of $35.3b and valuation increases of $29.5b. General insurance prepayments and reserves were $98.7b following transactions during the quarter of -$0.6b.