Local Market Summary
• The Kina Securities Index (KSI) up by 2.1% to 3,830.91 and KSI Home Index remained unchanged to 8,219.28 for the week.
• Treasurer Don Polye clarified in a statement that this year’s depreciation of Kina was due to the fall in demand for commodities in line with the global economic recession, which affected the export earnings (mining, and energy sectors, tourism, agriculture and fisheries).
• Mining Minister Byron Chan stated that there will be delay in implementing the Solwara1 project due to current legal matters that needed to be addressed.
• Fiji wants to take advantage of the economic boom in Papua New Guinea and enhance its trade and investments, High Commissioner Romanu Tikokoca said.
• NASFUND Savings and Loans Society Limited (NCSL) celebrated its ten years of service this week.
• The Board of Melanesian Trustee Services Ltd (MTSL) announced a dividend of K4.4 million (35 toea per unit), payment in December 2013, CEO Mr Wemin said.
• Mr Yaninen, CEO of National Development Bank stated at the launching of the ‘Stret Pasin Business Scheme’ that that the bank will be seeking Business franchise operations to support its scheme.
• The PNG Government signed a partnership deal with Digicel for a multimillion kina programme to be rolled out in two mining provinces for access to information Communication technology.
• Interoil Corporation 2013 third quarter results, have shown a net loss of $6.3million (K15.25million) in profit compared to a profit of 5.3million (K20.832million) on previous corresponding period. The decrease was mainly due to increase foreign exchange losses and relatively stable crude and product price movements.
• Marengo Mining Limited released its 2014 first quarter consolidated financial results as at 30th September 2013. Reporting a loss of $2.3million after income tax compared to loss of $1.6million on previous corresponding period.
International Market Summary
• According to Oxfam’s report during the week, the Australian mining companies faced hurdles whilst trying to gain consent from the Indigenous people to access minerals on their land in Australia.
• Rio Tinto’s most important growth project has suffered another holdup, with financing of the Oyu Tolgoi expansion in Mongolia delayed indefinitely. Rio said continuing objection with the Mongolian Government remained uncertain, meaning that a global effort to raise $US4 billion for the second stage of the mine could not be completed in the near term.
• US stocks advanced towards new all-me highs after the nominee to head the Federal Reserve defended the central bank’s economic stimulus efforts.
• European stocks rose as sluggish euro-zone growth figures and dovish comments by Federal Reserve Chair Nominee Janet Yellen suggested that accommodative monetary policies from central banks will remain in place for some time.
• Japanese stocks led Asian markets higher after third-quarter growth data beat expectations, while renewed expectations that the U.S. Federal Reserve would maintain its stimulus weighed on the dollar.
• Copper prices were steady at the close of London Metal Exchange trade as investors weighed a firm dollar and some weak European data against fresh hopes for an extended period of U.S. economic stimulus.
• Gold prices increased by 0.2% to $1,288.20.
• Oil closed marginally lower for the week to USD$94.18 per barrel while Brent increased 2.8% over the week to close at USD$108.54 per barrel .
• The Kina rebounded against the USD and AUD during the week following its recent slump against the two major currencies. The PGK finished the week at PGKUSD0.3875 and PGKAUD 0.4149.
• The AUD closed the week at 0.9336 against the USD following weakness in the currency through the latter half of October (see graph in the PDF attachment below).
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