Local Market Summary
• Following a tax review last week, Chairman Sir Nagora Bogan stated that the tax review committee intends to broaden tax base in PNG through other areas of taxa on so that the country does not exclusively depend on tax from income and consumption which has historically provided 70% of the tax base. Potential new tax bases are capital gains tax on investments and listed shares.
• Retail prices of petrol, diesel and kerosene in Port Moresby have increased this month, the Independent Consumer and Competition Commission said. Acting CEO Michael Mai said the price of petrol increased by K0.08 to K4.25 per litre compared to K4.17 per litre last month. Both diesel and kerosene prices increased by K0.06t with diesel is now selling for K3.74 per litre and kerosene at K3.57 per litre Mr Mai said prices for all three products at the import parity prices (IPP)
level had increased this month, which was due to the depreciation of kina value last month by 1.24%.
• The Mineral Resources Development Corporation has been appointed as the trustee of Pacific Property Trust (PPT). PPT was formerly managed by the Melanesian Trustee Services Limited. According to Mr Augustine Mano the Managing Director of MRDC, the company had paid K69 million to acquire the trust. MRDC now owns 98% of the trust.
• The State is facilitating a meeting between the Porgera mine project MOA parties and Barrick for the company to become part of the revised agreement. East New Britain, Barrick refuses for various reasons and the state respects their decision but supports the need for a roundtable meeting between MOA parties and Barrick, the Minister Mining and Petroleum Minister, Mr Chan said.
• This weeks BPNG auctions in Central Bank Bills (CBills) and Treasury Bills (TBills) were under subscribed. The TBills weighted average yields for 182 and 364 days were slightly higher from the previous week, 3.97% and 6.21% respectively.
• Over the week, PGK/AUD exchange rate ended the week 1.0% lower, settling at 0.4381 while PGK/USD exchange rate remained unchanged at 0.4129 for the week.
• Both The KSi Index and the KSi Home Index closed the week marginally lower by 0.3% to 3,682.67 and 0.6% to 7,919.76.
International Market Summary
• US share markets fell on Thursday with investors trimming positions in equities in favour of safe-haven assets like government bonds and gold in response to violence in Iraq.
• European shares ended little-changed on Thursday. The FTSEurofirst 300 index was flat with the German Dax down by 0.1% while the UK FTSE rose by 0.1%.
• China inflation is at a four-month high and its consumer inflation edged up to a four-month high of 2.5% in May while factory price deflation eased, reinforcing signs of stabilisation in the economy.
• On commodities, Gold was up 1.6% to U$1,274.00 similarly both Brent and Light Crude were up 4.1% to U$113.24 and 4.0% to U$106.53 respectively, follow a week of increased tensions in Iraq (see chart in the PDF attachment).
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