Securities registered with the Norwegian Central Securities Depository, Q2 2010

The sharp growth in stock market values throughout 2009, with share values of the VPS-registered companies increasing by more than 36 per cent, did not continue into 2010. A slight increase in the share values in the first quarter of 2010 by two per cent was followed by a sharp fall in the share values of more than 10 per cent in the second quarter. One of the main causes of the reduction in share values was the uncertainty related to the strength of the global economy. The Oslo Stock Exchange All-share index fell by more than 10 per cent in the second quarter. At the end of the quarter the share values of the VPS-registered companies were divided into NOK 1 269 billion of quoted shares and NOK 385 billion of unquoted shares. Foreign investors were the largest owner group with nearly 31 per cent ownership of the total share values, followed by the government with an ownership of nearly 29 per cent.

Increase in share dividends

The payments of share dividends from the VPS-registered companies increased slightly by nearly NOK 6 billion in the second quarter of 2010 compared with the same quarter of 2009. Even if the total payments of share dividends amounted to nearly NOK 42 billion, it was far less than the record payments of nearly NOK 69 billion in the second quarter of 2008. More than half of the total share dividends were paid out by state-owned enterprises, and nearly 30 per cent were paid out by private companies. Almost half of the share dividends were received by Central government, and nearly 25 per cent went to foreign share owners.

Reduced ownership among foreign investors

Foreign investors net sold VPS-registered shares totalling almost NOK 17 billion in the second quarter of 2010. In the first half of 2010 foreigners have net sold shares for more than NOK 22 billion reducing their ownership by nearly 2 per cent from the beginning of the year. The main purchasers of these shares were other private companies, who have net purchased shares totalling almost NOK 22 billion in the second quarter, and nearly NOK 25 billion in the first six months of 2010.

The households, who were net sellers of shares in the first quarter of 2010, are again net purchasers in the second quarter. In the second quarter of 2010 foreign investors net sold shares worth more than NOK 109 million.

Stocks of debt securities

Stocks of debt securities registered with the Norwegian Central Securities Depository increased in the second quarter of 2010.The stock of bonds increased by nearly two per cent, to NOK 1 238 billion, and the stocks of short-term debt securities increased by more than 2 per cent, to NOK 350 billion, in the period. The sharp growth in the stocks of debt securities throughout 2009 was mainly caused by the increase in issuing activity due to government measures established in October 2008 to improve the liquidity in Norwegian banks¹.