KFM Weekly Investment Update: Friday, 06 December 2013

Local Market Summary

• The Kina Securities Index (KSI) marginally increased by 0.4% to 3,87279 while the KSI Home Index slipped 0.1% to 8,215.71 for the week.

• Kina Securities Ltd has opened a new office in Lae to provide service to the Highlands region. Kina Group Chairman Sir Rabbie Namaliu said that continuing growth of enterprises and financial institutions in PNG re-quires significant back up.

• An advanced broad band service (ADSL2+) that offers 10 times speed than what is currently available in Papua New Guinea has been tested by Telikom. The service would be delivered through a modem that comes with built-in Wi-fi capability, making it easier to connect to the internet using faster infrastructure that could be used by many users, Telikom PNG has said.

• Marengo Mining Limited (MMC) and its subsidiaries have agreed to a refinancing transaction with major shareholder, the Sentient Executive GP Ltd. The refinancing ensures financial support for MMC’s operations next year.

• Credit Corporation Ltd (CCP) announced that the Board of Directors have resolved to extend the on market share buyback program effective for 12 months from 4 December 2013.

• Bank South Pacific Limited (BSP) announced the appointment of Ernest Gangolf to the Board.

• New Britain Palm Oil Limited (NBO) announced quarterly report for the three quarters ending September 2013. Sales revenue of USD431.3 mil-lion, down 18% from prior corresponding period (pcp); Profit before tax of USD18.5 million. Average oil prices achieved were down in the USD800-900 per million tonnes.

• Coppermoly Limited (COY) announced the appointment of Mr Michael Howard as a Non-Executive Director of the Board of Directors .

International Market Summary

• The Australian reserve bank has left the cash rates at 2.50%. Cash and Fixed interest securities may continue to expect volatility however the RBA appeared to take a more neutral stance easing monetary policy.

• The price of gold, US equities and the Australian dollar have all fallen as better-than-expected economic data emerges from the US, bringing forward taper predictions. At the same time, bond yields have risen, consistent with the taper being the first step on the path to higher interest rates.

• The S&P/ASX 200 Index was down 0.2% following Thursday’s session down 1.5%, the worst day’s trading in four months (see chart in the PDF attachement below).

• Oil (Brent) price moved up 1.5% to US$111.31 and light crude close 5% higher at US$97.33.

• Gold dropped 1.8% to US$1227.60 for the week.

• The Kina appreciated against 2.3% the AUD following a weakening in the Australian Dollar and appreciated 1.6% against the USD during the week. The PGK finished the week at PGKUSD0.3934 and PGKAUD 0.4345.

Click on the link below to view full report in PDF.

pdfKFM Weekly Investment Update: Friday, 06 December 2013

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