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
    Development Bank.
  • 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
    geo-political instability.
  •  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.

    KFM Weekly Investment Update: Friday, 9th of November 2018

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