Local Market Summary
• According to Lead Pacific Economist at ANZ Bank, Daniel Wilson, the value of the Papua New Guinea’s currency, the kina, is expected to fall as much as ten per cent over the coming year, after stabilising for the last two months.
• The Independent Public Business Corporation (IPBC) announced this week that National Executive Council (NEC) recently has given approval of a 30 megawatts power plant to solve power generation issues in Port Moresby.
• Marengo Mining Limited (MMC) has cited power has been one of the major setbacks being experienced in it getting its Feasibility Study completed. The company has spent K400 million since starting its operation but the 50% of the total went towards powering its operations. The company prefers other investor to take up the power business although it has the option of building a power station.
• OIL Search Ltd announced final quarter revenue last year of US$210 million (K508 million), up 20% from the previous quarter, according to a company report. Total revenue for the last financial year also jumped 6% to US$766.3 million (K1.8 billion) from US$724.6 million (K1.7 billion) in 2012.The company produced 1.77 million barrels of oil equivalent (mmboe) taking the overall production for the year to 6.74 mmboe. (See graph in the PDF attachment below). Oil Search increased estimates for 2014 production as PNG LNG begins production in 2014.
• Telikom is cutting costs and trimming its operations but has no plans to sell it as claimed by the PNG Communication Workers Union. Independent Public Business Corporation (IPBC) Managing Director Wasantha Kumarasiri noted the government has no plans to sell Telikom and was not aware of schemes to sell Telikom.
• OK Tedi mine is likely to come to a halt after the National Court gave orders stopping it from dumping waste into the OK Mani, OK Tedi and Fly rivers. The landowners went to the court with two main reasons. They alleged that the mine continued to dump mine waste and tailings into the Ok Mani, Ok Tedi and Fly rivers hence affecting the lives of the people living along the river systems and a number of trust funds established for the benefit of the people of Western Province were being depleted at a fast rate that the court should intervene to stop the people’s money being spent without their consent.
• Honourable PM, Peter O’Neil announced this week that the PNG government plans to list certain State Owned Enterprises. The first will be Air Niugini. The PM also announced plans to move the Port Moresby Harbour from down town to the other end of Fairfax Harbour.
• KSI increased slightly by 0.1% to 3,873 while KSI Home Index and KSI Home was flat at 8,210 for the week.
International Market Summary
• Australia’s Mining investment is tipped to decline sharply from the middle of this year, hitting Australia’s growth, but a rise in the export of resources and government spending on infrastructure is expected to help boost the economy in the future years, ANZ economists Dylan Eades and Justin Fabo said in a research note.
• US economic growth in Q4 2013 grew at an annual rate of 3.2%, slightly lower than the Q3 growth.
• Federal Open Market Committee this week announced, after two days meeting in Washington, the new monthly tapering of QE3 to be at $65 billion from $75 billion. The move is in observation of improvement in labour market which Federal Open market Committee claimed showing indicators of mix but altogether improving.
• Westpac has been ranked the most sustainable company. It had been ranked number one in ‘Global 100 must sustainable corporations in the world’ at the World Economic Forum in Geneva, Switzerland.
• Microsoft Corp had reported better than expected returns for its 2nd fiscal quarter. Having sold 3.9m Xbox One consoles to retailers and doubled revenues from its Surface tablets in the quarter, net income for the quarter rose to USD6.5bn.
• During the week the Kina depreciated against the AUD by 1.5% to 0.4479 and against USD by 0.6% to 0.3930.
Click on the link below to view full report in PDF.