Changes in the public's financial assets portfolio in the second quarter of 2011

15.08.2011
 
Changes in the public's financial assets portfolio in the second quarter of 2011
 
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  In the second quarter of 2011 the value of the public's financial assets portfolio fell by about 3 percent in real terms, and reached NIS 2.5 trillion at the end of June.
  The decline in the second quarter resulted mainly from the fall in prices of shares traded in Israel. Since the beginning of the year the value of the portfolio has fallen by about NIS 72 billion.
  The value of the public’s shares portfolio abroad fell by about NIS 4.4 billion, due to a decline in net investment in foreign assets, the drop in prices in the international markets, and the appreciation of the shekel against the dollar.
  The share of tradable assets in the portfolio continued to decline in the second quarter, and reached 52 percent.
In the second quarter of 2011 the value of the public's financial assets portfolio fell by about 3 percent in real terms, and at the end of June reached NIS 2.5 trillion. This followed the 0.4 percent decline in the first quarter.
The decline in the value of the portfolio in the second quarter of 2011 was due mainly to the fall of about NIS 56 billion in the shares component in Israel, essentially the result of a 10 percent decrease (NIS 54 billion) in prices on the Tel Aviv Stock Exchange (TASE), a 3 percent (NIS 4.4 billion) price drop in stock markets abroad, and a 1.3 percent (NIS 3 billion) fall in the value of negotiable bonds in Israel.
As a result of these developments, the share of tradable assets in the portfolio continued to decline in the second quarter, and reached 52 percent, due mainly to a drop in the value of short-term assets in Israel.
 



 
Shares in Israel
In the second quarter of 2011 the balance of shares held by the public dropped by some NIS 56 billion (11 percent), to NIS 465 billion. The decline was mainly due to the fall in share prices on the TASE––net sales totaled only NIS 1.4 billion. Since the beginning of the year the value of the portfolio has fallen by about NIS 72 billion (13 percent), in contrast to the last quarter of 2010, when the value of residents' shares in Israel increased by about NIS 52 billion (11 percent), mainly due to the increase in share prices.
Corporate bonds
In the second quarter of 2011 the value of negotiable corporate bonds in the portfolio decreased by NIS 3 billion, and at the end of June reached NIS 242 billion. The drop was due to a 2 percent decline in bond prices (NIS 5.2 billion) that was partly offset by net issues of about NIS 2 billion (0.9 percent increase in net issues). The downward trend in the value of the bond portfolio started in May 2011, following a long upward trend in the value of the portfolio during 2010 and the beginning of 2011 that added about NIS 42 billion (20 percent) to the value, due mainly to price increases.
 


 
In the second quarter the share of risk assets declined by 2 percentage points to 46 percent.
The share of tradable assets in the portfolio declined by 2 percentage points, and reached 52 percent, due mainly to a drop in the value of short-term assets in Israel.