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Foreign investors buy forint gov't bonds, sell forex bonds in Q3 - MNB report

Foreign investors made net purchases of HUF 184 billion of forint government bonds in Q3 and revaluation added another HUF 60 billion to their stock. They were net sellers of HUF 341 billion of foreign currency denominated bonds – a drop the MNB attributed to the maturing of a HUF 1 billion eurobond in September – and revaluation caused stock to fall a further HUF 282 billion.

Foreign investors' stock of Hungarian government forint bonds reached HUF 2,227 billion at the end of September, or a quarter of the total stock. Their stock of foreign currency denominated government bonds was HUF 4,389 billion.

Foreign investors held HUF 4,416 billion of shares listed on the Budapest Stock Exchange at the end of September, up HUF 354 billion from three months earlier as revaluation gains added HUF 389 billion to stock and net sales came to HUF 42 billion. Foreign investors held almost 72% of all listed shares at the end of the period.

Hungarian non-financial companies' holding of listed shares reached HUF 583 billion at the end of September, lifted by HUF 5 billion of net purchases and HUF 50 billion of revaluation gains.

Financial companies' share holdings rose to HUF 536 billion in Q3 as they made net purchases of HUF 34 billion and price changes added HUF 50 billion to their stock.

Households sold net HUF 3 billion of shares during the period, but HUF 37 billion in revaluation gains lifted their stock to HUF 376 billion.

The general government's net share transactions were practically nil in Q3, but HUF 27 billion of revaluation gains brought share holdings to HUF 234 billion.

Foreign investors' stock of Hungarian mortgage bonds came to HUF 593 billion at the end of September, a fraction under one-third of the total. They were net sellers of HUF 49 billion and took a HUF 36 billion loss on price changes.

Financial companies held HUF 1,207 billion of mortgage bonds, buying net HUF 18 billion, but losing HUF 99 billion on revaluation losses. (MTI-Econews)