Local Market Summary
• Japan’s Prime Minister, Mr Shinzo Abe stated Japan was keen to enhance its bilateral relationship with PNG in his visit this week. Mr Abe also confirmed that Japan has committed to extend economic corporation amounting to 20.0 billion yen over the next 3 years.
• PNG is scheduled to host the second Melanesian Spearhead Group Investment Roadshow and Trade Fair in Port Moresby in the next four months.
• All prospecting licences for oil and gas in the country are undergoing review. According to Mr Duban, the purpose of the review is to get rid of the unlisted foreign companies that are abusing the country’s licensing regime by “wholesaling” licenses to the highest bidders.
• The Bank of Papua New Guinea will host the financial inclusion expo in Kokopo. During the expo various commercial banks, financial institutions, superfunds and stockbrokers will showcase their products and services and also conduct free financial literacy training on money management, business development services and their products and services.
• PNG’s premier sugar producer Ramu Agri Industries Ltd has reached a milestone in by exporting ethanol to overseas market. The company anticipates shipping 2.0m litres of ethanol to Asian markets each year with the first shipment leaving early this week to South Korea.
• Bemobile has entered into a 10-year partnership with Vodafone UK. The partnership will take effect immediately with mobile solutions and benefits to be extended to PNG and Solomon Islands customers.
• Newcrest (NCM) Managing Director & Chief Executive Officer, Mr Sandeep Biswas, announced the composition of the company’s new executive leadership team. Mr Biswas, further stated that the team has extensive operational and functional experience and the right skill base to fully realise the potential of all Newcrest’s assets. NCM closed the week higher at AUD11.2 following mid-week lows of AUD10.6 (see chart in the PDF attachment below).
• This weeks BPNG auction in Treasury Bills was over-subscribed by K81.5m. Both 182/364 days weighted average yield rates slightly increased to 4.2% and 6.5%, respectively.
• Over the week, PGK/AUD closed lower to 0.5% settling at 0.4372 while PGK/USD exchange rates ended the week 0.2% lower, settling at 0.4104.
• The KSi Index ended the week flat at 3,765.5 while the KSi Home Index closed 8.2% high to 8,547.1
International Market Summary
• U.S. and Chinese leaders have agreed that China will reduce its intervention in the currency market when conditions are ripe, reaching an understanding on a prickly issue that has hurt ties between the world’s two biggest economies for years. China’s Central Bank Governor Zhou Xiaochuan said on the sidelines of annual high-level talks between the two nations that China will “significantly” reduce its Yuan intervention when some prerequisites are met. He did not give further details.
• A mounting crisis at one of Portugal’s biggest banks and signs of a deepening economic slowdown in Europe have sent tremors through financial markets, triggering a sharp fall on European bourses and a flight to safety across the world.
• Gold was up 1.3% to U$1,338.50 while both Brent and Light Crude declined by 1.8% and 1.0%, respectively.
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