Local Market Summary
• Finance Secretary Dr Ken Ngangan says Government accounts will be closed on December 12 and will re-open in the first week of January. Dr Nagangan said December 12 was strictly the cut-off date for all commitments to the Government and the Integrated Finance Management System would be shut down after that
• Department of Agriculture and Lifestock has initiated business plans for coffee and cocoa which it hopes will bringinvestors to establish niche markets for local farmers. Secretary Dr Vele Pat Ila’ava said the plan would help cocoa and coffee farmers benefit from their products. As part of the plan agri-business expert, Mr Andrew Graffham will be meeting and consulting key stakeholders next week. Dr Ila’ava said Graffham would work on business plans linking them to niche markets
• Northern Governor Mr Gary Juffa is determined to table a private members bill on sugar tax, commenting sugar was more harmful to health than tobacco
• Prime Minister Peter O’Neill has welcomed the commitment of fellow Asia-Pacific Economic Cooperation (APEC) leaders to strengthen food security in the region which would benefit the people and food producers of Papua New Guinea. After the leaders released their Lima Declaration this week. APEC can address challenges to food security and this has implications for all people in the food supply chain, from farmer to consumer, O’Neill said
• The shortage in foreign currency has affected the fisheries industry and the PNG Fishing Industries Association wants to see more cooperation between stakeholders to rectify it. The economy has seen a decline in forex, attributed to depressed commodity prices in the international market plus the closure of the Ok Tedi mine for seven months up to March this year. The industry was heavily affected because most of the fishing companies operate in US dollars for bills
• PNG Power (PPL) has confirmed that it has not signed any Power Purchase Agreement with Mayur Resources to build coal-fired power plants in Lae but only received an unsolicited proposal from Mayur Resources. PPL’s CEO Mr Chris Bais stated that the proposal is currently under an assessment stage as their technical teams need to ascertain its technical and financial viability
• The Independent Consumer and Competition Commission (ICCC) have given approval on the code share deal between Air Niugini and Australia airline, Qantas for the Port Moresby – Cairns route. The deal was officially announced by ICCC’s Commissioner and CEO Mr Paulus Ain which will be for a period of 5 years. The two airline will code-share for passenger’s services only
• Oil Search and ExxonMobil have signed an agreement to sell 20.0% interest in Petroleum Prospecting Licence (PPL) 402 to Barracuda, a subsidiary of Santos. Both had a 50.0% interest in PPL 402. Oil Search PNG will retain a 37.5% interest while ExxonMobil’s subsidiary Esso PNG will retain a 42.5% interest. PPL 402 is located about 40.0 km northwest of the Hides gas field and production facilities in Hela. The Licence covers an area of 510 km2. According to Oil Search the agreement would result in Barracuda participating in the recently spudded Mukruk 1 well
• Westpac says as import orders generally increase around Christmas each year, a number of forex orders have already been placed and the bank is making every effort to clear them quickly. Quite a number of orders have already been placed by our customers and we’re making every effort to ensure they are filled with minimal delay, a bank spokesperson said
• Bank South Pacific Capital on behalf of its client Nambawan Super is seeking Expression of interest in respect to the sale of a 34.0% stake in Brian Bell. The company’s principal activities are the retail and wholesale of household appliances and furniture, electrical equipment and servicing and chemicals for industrial agriculture and domestic applications.
• This week’s auctions in Central Bank Bills were undersubscribed by K68.0m out of K201.0m offered. The weighted average yield for 28 days remained unchanged at 1.17% while the 63 days was at 2.35%
• This week’s BPNG auctions in Treasury Bills were undersubscribed by K82.1m out of the K201.9m on offer .The weighted average yield for 182 days and 364 days remained unchanged at 4.72% and 7.73% respectively
• The KSi Index ended the week lower by 0.4% to close at 4,772.35 points on the back of a 1.2% loss in Oil Search at K16.38, the KSi Home Index was also down by 0.3% underpinned by a decrease in share price of local finance and property investment company stock Credit Corporation to end at K1.90
International Market Summary
• US stocks hit highs as Oil prices rallied. All four major US equity benchmarks climbed to record highs as oil jumped on optimism OPEC will agree to cut output at their November 30 meeting.
• European shares rose on Monday, helped by a rise in commodity prices as investors continued to buy cyclical stocks and sell defensives on bets that the US presidential election result might revive inflation globally
• Nikkei pauses after rally, earthquake impact seen limited. Japanese stocks paused on Tuesday morning after a strong rally and as investors pondered the impact of a powerful earthquake that hit northern Japan
• PGK/USD remained unchanged for the week to close at 0.3150, PGK/AUD fell by 0.6% for the week to end at .4238, while AUD/USD appreciated by 0.7% to end the week at 0.7442
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