KFM Weekly Investment Update: Friday, 01 March 2019
- PNG National Statistical Office released the quarterly Consumer Price Index
(CPI) report for the 2018 December quarter. According to the report, CPI
inflation was 0.8% for the quarter and 4.3% for the 12 months to December.
The key contributions to the CPI inflation for the quarter were from the following
CPI groups; Alcoholic Beverages (1.9%) driven by 2.7% increase in Betelnut
prices, Miscellaneous (1.8%) driven by 4.0% increase in Toiletries products and
Food and Beverages (1.2%) driven by increase in prices of fruits, vegetables,
butter and seasoning products. The CPI inflation by town groups for the quarter
were 1.1% for Port Moresby, 0.9% for Lae, 0.7% for both
Goroka/Hagen/Madang and for Alotau/Kimbe/Rabaul.
- Lae Chamber of Commerce and Industry President Mr John Byrne, stated that
the Foreign Investment Regulatory Bill is still under scrutiny and consultation
within the business community. He added that other relevant business
chambers believe the Bill will be re-tabled in the May Parliament Session and
pursues a bill which protects and improves the rights of the country’s citizens to
own and operate businesses, while equally protecting the law-abiding, taxpaying
business community of investors and owners who employ, educate and
develop tens of thousands of PNG citizens.
- National Superannuation Fund (NASFUND) announced an interest of 3.5% to
be credited to member accounts, following the release of its 2018 financial
results of K158.0m profit after tax. Chairman Mr Hulala Tokome reported that
the Board had applied prudency and caution in provisioning of a number of
underperforming investments and which was reflected in the modest crediting
- Kina Bank Limited’s subsidiary company Kina Nominees Limited (KNL), has
had its Trustee License renewed under sections 37 and 189 of the Capital
Market Acts 2017. Concurrent to the Securities Commission of Papua New
Guinea, KNL is an experienced Trustee and Fund Manager with over K1.0b in
funds under management and investment portfolios.
- Kina Securities Ltd (KSL) reported a statutory net profit after tax of K48.1m, up
109% from prior corresponding period (pcp), FX income restored to K34.2m,
Net interest margin steady at 7.6%, Net interest income of K87.6m, up 21%
from pcp, Non-interest income of K74.1m, up 90% and Capital adequacy
maintained at 28.9%. The financial results were predominantly driven by
continuous foreign exchange trading, backed by a strong US dollar
correspondent banking relationship further supported by higher income growth
across the group.
- Additionally, KSL declared a final dividend of AUD 5.0 cents /PGK 12.1 toea
per share. Dividend ex-date is 4 March 2019 and payable on 4 April 2019.
- Bank South Pacific Limited (BSP) released the group’s consolidated operating
profit after tax of K844.0m for the 2018 financial year. The revenue growth has
come from interest income streams, particularly from loans and advances, with
BSP growing its loan book by 11.8% as well as additional income from BSP
Finance businesses in PNG, Fiji, Solomon Islands and Cambodia. BSP’s total
assets at year-end was recorded at K20.7b.
- City Pharmacy Limited (CPL) Managing Director Mr Mahesh Patel said they
anticipate to start rebuilding the Gerehu Warehouse which will cost around
K45.0m in April. According to Mr Patel, the construction will be done in two
phases, phase one will be a very large dry goods, air-condition, pharmaceutical
and grocery and phase two will be the freezer and bakery and head office.
- This week’s BPNG auction in Central Bank Bills were under-subscribed by
K1.9m out of the total offered K906.9m. The weighted average yields for both
28 days and 63 days remained unchanged at 1.39% and 2.34% respectively
from last week, while 91 days was at 2.51%. There were no offers for 182 days.
- This week’s BPNG auction in Treasury Bills were over-subscribed by K1.6m
out of the total offered K208.9m. The weighted average yields for both 182 days
and 364 days dropped by 0.03 points to 4.63% and 6.61% respectively from
last week, while 273 days remained unchanged at 6.05%. There were no offers
for 63 and 91 days.
- The Kina Securities Index remained unchanged from prior week closing at
5,172.06 points, while Kina Securities Home Index rose by 0.2% to close at
11,501.79 points this week. The increase was mainly attributed to the rise in
share price of BSP stock from K10.30 to K10.32.
KFM Weekly Investment Update: Friday, 01 of March 2019