Local Market Summary
• The court will hand down its ruling on 1 July on the application on the stay of arrest warrants prepared by police against PM O’Neil. This comes after a tumultuous week in PNG which saw nationwide protests calling for the PM to stand down and the reinstatement of Taskforce Sweep head, Sam Koim and heads of police who were stood down while attempting to carrying out the PM’s arrest warrant.
• The National Executive Council has approved a new national minimum wage of K3.2 per hour, an increase of 91 toea from the last national wage rate of K2.3 set in 2008. Labour and Industrial Minister, Mr Benjamin Poponawa said that this would address the issues of under paid workers and some elements of balance and fairness in areas of declining labour force. Mr George Vaso, Secretary of Labour and Industrial relations reported that a three month grace period will be given to employers after the gazetted date and an inspection will follow thereafter to ensure compliance.
• The Commerce and Trade Minister Mr Richard Maru said 40% of Papua New Guineans are living below the poverty line, earning less than K2.0 daily according to reports from the World Bank. Mr Maru said this prompted the Governments’ move to involve greater local participation in small and medium enterprises.
• Development of the fund is nearing its final phase with necessary legislation in place and the model pending parliamentary approval in August. Establishment of PNG’s Sovereign Wealth Fund was vital to manage resources rent, cushion negative impact from economic shocks and reduce fiscal mismanagement & poor service delivery.
• New Ireland Provincial Government disposed 380,000 units of its New Britain Palm Oil shares to the Israeli LR Group for K6.8m. The Governor, Sir Julius Chan said the proceeds will be utilised for diversified agricultural activities and establishment of a joint venture interest in an integrated agricultural program with the Israeli LR Group. The stock closed on a weekly high of GBP4.75 (see graph in the pdf attachment below).
• Credit Corporation Limited announced a 13 toea dividend to be paid on 22 August 2014, at its AGM this week. All resolution were passed during the meeting.
• This weeks BPNG auctions in Treasury Bills were under subscribed by K58 million with slight increases in both 182/364 days weighted average yield rates from last week; 4.1% and 6.4% respectively.
• Over the week, PGK/AUD closed lower to 0.4% settling at 0.4374 while PGK/USD exchange rates ended the week 0.2% higher, settling at 0.4129
• Both the KSi Index and the KSi Home Index ended the week high by 1.1% to 3,717.58 and 2.8% to 7,917.24.
International Market Summary
• In US economic data, consumer spending rose by a less than expected 0.2% in May after a flat result in April, prompting economists to downgrade estimates for second quarter growth.
• Japanese consumer inflation rate rose rapidly in May on a sales tax hike. Japan’s internal affairs minister said that their core consumer prices, stripping out volatile fresh food prices, rose 3.4% year-on-year in May.
• European shares ended mildly weaker on Thursday driven by a fall in banking shares. The FTSEurofirst 300 index lost 0.1%, the German Dax lost by 0.6% while the UK FTSE eased ended flat.
• Gold was up 0.5% to U$1,320.60 while both Brent and Light Crude declined by 1.8% and 1.5% respectively.
Click on the link below to view full report in PDF.