Capital flows in the financial account, January 2013
Monthly report regarding the activity in the financial account of the balance of payments Jan. 2013.
Continued investments in government bonds in Israel and abroad, and sales of makam
Bonds and makam: In January, nonresidents invested around $200 million net in unlinked government bonds, and sold around $40 million net in makam. Preliminary figures for February indicate net investments of about $270 million in government bonds and sales of about $150 million in makam.
In January, the government completed the issue of dollar-denominated bonds abroad, totaling $2 billion in two maturity periods: $1 billion was issued at a yield of 3.2 percent for 10-and-a-half years (representing a spread of 125 basis points above the US Treasury 10-year security interest rate), and the same amount was issued at a yield of 4.6 percent for 30 years (representing a spread of 145 basis points above the US Treasury 30-year security interest rate).
Israeli shares: In January, nonresidents invested a net $340 million in shares on the Tel Aviv Stock Exchange (TASE), following net sales of about $90 million in December. Preliminary figures for February indicate net investment of about $90 million in TASE-traded shares by nonresidents.
Nonresidents' direct investment: In January, nonresidents' net direct investment in Israel via domestic banks totaled about $450 million, spread out among a large number of companies.
Increase in investment in foreign shares by institutional investors
Shares: In January, net investments by Israeli residents in foreign shares traded abroad totaled about $1.2 billion—about $1 billion by institutional investors, and about $230 million by households. In the past half year, institutional investors made net investments of about $4 billion in foreign shares.
Bonds: In January, residents sold a net $190 million in tradable bonds abroad—sales of about $280 million by the business sector were partially offset by net investments of about $60 million by household investors and about $30 million by the institutional investors.
Direct investment abroad: In January, residents sold about $20 million net in direct investment abroad.