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Foreign investors holding of Hungarian shares increases

Foreign investors' market share of equities listed on the Budapest Stock Exchange rose to 75.5% at the end of September from 73.8% at the end of June, although the market value of their holdings fell 6.8% to HUF 4,228 billion, figures published by the Central Bank (MNB) on securities ownership show.

Foreign investors were net buyers of listed shares in Q3, after making net sales in Q2. Other net buyers were insurers and pension funds and households in Q3 while banks and non-financial companies were selling in the period.

The BSE's market capitalization fell 8.8% or HUF 539 billion to HUF 5,603 billion in Q3. The drop resulted from a HUF 548 billion revaluation loss, HUF 6.5 billion of new issues and HUF 2.7 billion of other volume changes. Market capitalization has fallen every quarter since the end of June 2007.

Market capitalization has been on a downward path since early August, but a sharp drop - most likely on massive foreign sales - came early in October.

In Q3 foreign investors put net HUF 93 billion into listed shares - making them the biggest investors during the period - though they suffered a HUF 400 billion revaluation loss. The losses were similar to those seen in Q2, when foreign investors were net sellers to the tune of HUF 124 billion.

Other net buyers of shares in Q3 were insurers and pension funds, which bought net HUF 33 billion and suffered a HUF 27 billion price loss, raising the value of their portfolio HUF 6.7 billion to HUF 270 billion. Their market share rose to 4.8% from 4.3% at the end of June.

Households bought net HUF 4.3 billion of listed shares and had revaluation losses of HUF 17 billion in Q3. Households' share holdings fell HUF 13 billion to HUF 285 billion, but their market share rose to 5.1% from 4.9%.

Banks sold net HUF 58 billion of shares and suffered HUF 39 billion of revaluation losses in Q3. The market value of their listed share portfolio fell HUF 97 billion to HUF 150 billion. Their market share dropped to 2.7% from 4%.

Non-financial companies took out net HUF 63 billion from listed shares and had revaluation losses of HUF 53 billion in Q3. Their share holdings fell HUF 114 billion to HUF 398 billion, to give them a 7.1% market share, down from 8.3% at the end of June.

The value of listed shares held by the general government fell HUF 3.4 billion to HUF 171 billion or 3.1% of the total. HUF 3.1 billion of the drop came from price losses and HUF 296m came from sales by local governments. (MTI – Econews)