MNB: Households and financial corporations increase securities holdings in January

Holdings of securities by households (including non-profit institutions serving households) rose by HUF 116 bln, with transactions contributing HUF 107 bln to the increase. 

Purchases by households increased their holdings of government securities by HUF 159 bln. They preferred buying short-term government securities, with their holdings increasing by HUF 118 bln. Households reduced their holdings in the market of mutual fund shares and other bonds. 

Holdings of securities by financial corporations rose following the temporary decline in the previous month. Holdings were increased HUF 513 bln by transactions and HUF 58 bln by price changes, while exchange rate fluctuations decreased holdings by HUF 5 bln. 

Among financial corporations, credit institutions were net buyers during the month. They increased their holdings by HUF 329 bln, with transactions accounting for HUF 287 bln. Within this, their holdings of securities issued by the government sector rose by HUF 296 bln.

In January, the market value of total securities holdings rose by HUF 706 bln to HUF 40.204 trillion at the end of the month. Residents held HUF 24.366 tln, 60.6% of the total and non-residents HUF 15.839 tln, 40.2% of the total. In January, only non-resident holdings of securities fell.

The decrease in securities held by non-residents due to transactions was HUF 78 bln. Non-residents were sellers of securities issued by the government sector, with their holdings falling by HUF 51 bln due to transactions. 

Long-term forint and FX denominated securities held by non-residents fell and investments in short-term forint-denominated securities increased slightly. Non-residents also reduced their holdings of other foreign currency-denominated bonds by HUF 15 bln, of mutual fund shares by HUF 9 bln and of quoted shares by HUF 4.5 bln. Their holdings of other securities remained broadly unchanged due to transactions.