Foreign investors held a total of HUF 8,650bn or EUR 32bn worth securities issued by Hungarian entities – 38.2pc of the total – at the end of 2009, the NBH said in its quarterly report on securities ownership structure on Tuesday. They sold net HUF 520bn in Q4 but the market value of their holdings fell less than HUF 360bn, thanks to price gains on shares. Their market share fell in the fourth quarter of 2009.
Foreign investors were net sellers in every segment of the Hungarian securities markets in Q4 2009, except for HUF 13bn net secondary market purchases of Hungarian government bonds issued abroad, NBH figures reveal.
The largest foreign withdrawals were from Hungarian forint bonds, from two-week NBH bonds and from other bonds – bonds excluding government issues and mortgage backed bonds. They also sold, although to a far less extent, Hungarian listed shares, probably realising price gains.
The market value of domestic investors’ Hungarian securities holdings rose HUF 700bn in the period as the market value of the total stock of Hungarian securities outstanding rose HUF 340bn in Q4.
Foreign investors’ Hungarian securities portfolio included HUF 4,140bn market-value shares listed on the Budapest bourse, HUF 6,219bn in government securities, including foreign issues, HUF 914bn in mortgage-backed bonds and HUF 1,481bn other bonds. Their other holdings, such as investment fund units and NBH bonds were relatively insignificant both in size or compared to the respective stocks.
Foreign investors sold net HUF 21bn listed shares in the last quarter but price gains still raised the market value of their stock by HUF 152bn in the period. Their market share slipped to 72.8pc from 73.8pc. Total market capitalisation of the Budapest Stock Exchange rose HUF 276bn in Q4 to HUF 5,685bn at the end of 2009, practically all the rise in price gains.
Non-residents were net sellers of government securities to the tune of HUF 234bn in Q4 but still held 43pc of the total worth HUF 14,475bn, including both domestic and foreign issues, at the end of last year. The total stock hardly changed in the quarter, and domestic banks and insurance companies took up the securities sold in the period.
The foreign holding of NBH two-week bonds fell a sharp 124bn in the quarter to HUF 35bn worth at the end of the year, and their market share fell from 4.9pc at the end of September to just above 1pc. The total stock dropped a slight HUF 92bn in the three months to HUF 3,125bn.
At the end of 2009 41.2pc of mortgage-backed bonds of Hungarian issuers were in foreign hands as against 48pc three months earlier. Foreign investors sold HUF 20bn worth, and the market value of their holdings fell HUF 24bn in the last three months of 2009. The drop contrast with a HUF 268bn increase in the total stock in the period, practically all reflecting new issues.
Excluding government and NBH securities as well as mortgage bonds, the foreign share in other bonds issued by Hungarian entities fell to 52.7pc at the end of last year from 56.4pc at the end of September as they sold net HUF 141bn of these bonds. The market value of their stock fell slightly more, by HUF 150bn. The overall stock fell HUF 78bn in the quarter, to be worth HUF 1,481bn at the end of 2009.