KFM Weekly Investment Update: Friday, 09 November 2018
Prime Minister (PM) Hon. Peter O’Neill announced the 430km road
reconstruction and long-term maintenance of the Highlands Highway from
Lae, Nazab junction in Morobe Province to Kagamuga junction in Western
Highlands Province following the approval of the Cabinet. The 430km
project will be funded by a multi-year financing facility loan with the Asian
The National Government has allocated K40.0m for the redevelopment of
ports in Wewak, Vanimo, Manus and Kikori. Minister for Transport and
Infrastructure Hon. Westley Nukundj said the K40.0m appropriated for the
development of these four ports were allocated in 2018 Budget documents
into K10.0m where the operations and management of these ports after
completion will be under the responsibility of PNG Ports Corporation Ltd
Australia will create a multi-billion dollar fund for Pacific island nations to
build infrastructure in a move seen as a bid to stand China’s influence.
Australian Prime Minister Hon. Scott Morrison said he aims to restore the
Pacific to the ‘front and centre’ of Australia’s foreign outlook. Australia will
offer up to A$2.0bn (K4.64bn) in grants and loans to strengthen ties, he said.
The Independent Consumer and Competition Commission (ICCC)
announced the new retail fuel price for the month of November 2018 which
would come to effect on the 08th of this month. According to ICCC, the retail
prices for petrol will decrease while diesel and kerosene will increase
nationwide as a result of global market price for crude oil largely caused by
Meanwhile, for all centers, the maximum retail fuel prices for each petroleum
product in the country would change on average as follows; Petrol price
down K0.02 to K3.83 per litre while Diesel & Kerosene up K0.09 and K0.10
to K3.64 and K3.34 respectively from the previous month.
Kumul Hotels Limited (KHL) completely sold out Crowne Plaza Hotel, Port
Moresby to an entirely owned subsidiary of HTS Holdings Ltd. KHL
announced its intention to sell in 2016. Advisors were appointed to market
the hotel to potential domestic and overseas purchasers through a public
sales campaign. A lengthy sale process was conducted, that has been
examined by separate external advisers and found to be robust. The
directors of KHL consider the sale to be in the best interests of the company
having regard to a number of consideration.
Nasfund Contributors’ Savings and Loan Society (NCSL) have now
automated their 1:2 loan process which means members can access their
funds within the same day. The NCSL in a statement said that the
automation process began early this year with the 1:1 loans. NCSL
continues to look at innovative ways to enable members to easily access
NCSL’s products and services regardless of their location. Lending manager
Bernard Geita said the automation has resulted in minimal manual
intervention. As a result, NCSL is able to process loans well ahead of its
service standards: 24 hours for 1:1 loans and 48 hours for 1:2 loans.
The Board of Directors of PNG Air (CGA) appointed Mr. Ali Contractor as
the Chief Financial Officer for CGA. Mr Contractor’s position will be effective
on 26 November 2018 replacing Mr.Jaydip Sengupta who resigned in
September this year.
This week’s BPNG auction in Central Bank Bills were over-subscribed by
K3.0m out of the total amount offered K535.9m. This indicated that there
was an increase in appetite for shorter dated securities. The weighted
average yield for 28 days remained unchanged at 1.39% from the previous
week while there were no bids for 63,91 and 182 days.
This week’s BPNG auction in Treasury Bills were under-subscribed by
K175.36m out of the total amount offered K304.3m. This indicated that there
was a decrease in appetite for longer dated securities. The weighted
average yields for 182 and 364 days remained unchanged at 4.73% and
8.05% while 273 days down by 0.10% to 6.75% from 6.76% from the
previous week. There were no bids for 63 and 91 days.
The KSi Index and KSHi Index remained unchanged from the previous week
at 5,417.36 and 11,441.71 points respectively.