KFM Weekly Investment Update: Friday, 08 November 2013

Local Market Summary

• The Kina Securities Index (KSI) dropped by 3.8% to 3,752.94 and KSI Home Index fell 0.1% to 8,214.05 for the week.

• Kina Asset Management Limited (KAM), today announced its Net Tangible Asset (NTA) at K1.13 per share as at 31st October 2013.

• Bank South Pacific Limited released its 2013 3rd Quarter financial results recording a Net Profit after Tax of K105 million for the quarter and Year to Date NPAT is K310 million, up 2% on previous corresponding period.

• The Kina Facility Rate (KFR) published by Bank of PNG remains at 6.25% for the month of November.

• The PNG Consumer Price Index (CPI) CPI was released this week showing an 3.5% change over the last 12 months from September 2012 to September 2013. The CPI increased by 1.2% in the year end.

• Air Niugini announced a net profit of K100 million and a gross turnover of K1 billion in the last financial year ending declaring a K7.6 million dividend to the State Public Enterprise and State Investments. The profit was attributed to the construction phase of the LNG project.

• ICCC announced that the prices of fuel in Port Moresby have increased due the continuous depreciation of Kina and increased prices of crude oil.

• On Tuesday, 5th November, Bank PNG and World Bank launched the National Survey on financial capability in Port Moresby to enhance national baseline across Income groups of financial institutions.

• Telikom PNG Ltd will spend millions of kina in personnel training and performance incentives and in putting up new infrastructure, chairman Mahesh Patel said. Patel stressed that consumer demand and competition were main drivers behind this new culture. As part of this new push, Telikom will assess performance of its employees based merit.

• Standard & Poor’s ratings agency has maintained its year-long rating of Papua New Guinea’s economy as stable; the agency has kept foreign and local currency long-term ratings at ‘B+’, and the short-term ratings at ‘B’.

International Market Summary

• The Reserve Bank of Australia (RBA) met this week and decided cash rate remains unchanged at 2.5% in a statement by Governor Glenn Stevens.

• European stocks ended lower for the week as European Central Banks surprise cut to interest rates gave way to doubts about the health of the euro-zone economy.

• The ASX/200 closed lower this week due to two of the four big banks (ANZ & NAB) trading ex-dividend and weak employment numbers reduced investor sentiment

• Westpac Banking Corporation released its 2013 full year financial results as at 30th September 2013. Recording a net profit of $6,816 million, up 6% from 1H13 and 14% FY13.

• US stocks traded broadly lower as investors grappled with concerns over what stronger than-expected U.S. growth might mean for Federal reserve policy.

• Asian markets were lower, with a fall in Toyota Motor Corp. shares prompting selling in Tokyo.

• Base metals on the London Metal Exchange closed lower after a stronger dollar offset support from upbeat economic data from the U.S. and a rate cut by the European Central bank.

• Gold prices marginally dropped by 0.3% to $1,309.70, while after the recent rebound in gold prices, short-term oriented investors are already leaving the market again. Gold closed the week at USD1,325.80 for the week.

• Oil close down marginally lower for the week to USD$94.33 per barrel while Brent slumped 2.7% over the week to close at USD$103 per barrel (open the PDF attachment below to see the graph).

• The Kina continued to slide lower against the USD and AUD for the week closing USD0.3812 and AUD0.4026 respectively.

Click on the link below to view full report in PDF.

pdfKFM Weekly Investment Update: Friday, 08 November 2013

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