KFM Weekly Investment Update: Friday, 12 April 2019 - Kina Bank

KFM Weekly Investment Update: Friday, 12 April 2019

  • Finance Minister and Leader of Government Business Hon. James Marape
    recently announced his resignation from the Government’s Cabinet. Hon.
    Marape stated his resignation was based on differing views on important policyrelated
  • Stakeholders and joint venture partners of Total SA have come together with
    the National Government to sign a US$12.0bn gas agreement with Gulf PNG
    LNG. Prime Minister Hon. Peter O’Neil further declared that this will be the first
    time that both the Government and landowner equity will participate in local
    content at 22.5%. Construction is due to commence in 2021 with the first gas
    export in 2024. Furthermore, PNG Chamber of Mines and Petroleum Executive
    Director Dr Albert Mellam acknowledged the Government together with Total
    SA and project joint ventures on the signed Gas agreements as it is a significant
    LNG Development.
  • The Independent Consumer and Competition Commission (ICCC) approved
    Kumul Consolidated Holdings Limited (KCHL) to transfer all its shares in
    Bemobile Limited to Kumul Telikom Holdings. ICCC’s Commissioner Mr Paulus
    Ain said his office completed assessment of KCHL’s application and gave
    authorization for KCHL to proceed with the transfer of shares after it concluded
    that the share transfer will not have the effect of a substantial lessening
    competition in the market for the provision of retail mobile phone services.
  • Nambawan Super Limited (NSL) announced its 2018 financial year profit of
    K274.0m and declared an interest crediting rate of 3.7% for its members. NSL
    Chairman Mr Anthony Smare said 2018 was a challenging year with the mixture
    of tough economic conditions and foreign exchange pressures leading to
    strains in the performance of companies in which the Fund had interests in. Mr
    Smare further added that the 2018 financial results backed NSL’s investment
    strategy in which the Fund now had a net asset value of K6.9b, total member
    contribution of K499.0m in 2018 and total member payout of K252.0m. NSL’s
    Chief Executive Officer Mr Paul Sayer said NSL ensures that each year it
    continues to grow the members’ contributions from the profits received through
    dividends, interests and rentals.
  • Defence Force Retirement Benefit Fund’s (DFRBF) Board Chairman, Mr Moses
    Koiri announced an interest crediting rate of 5.2% for 2018 which was approved
    for DFRBF members, with an added K9.0m reserve for funding of the pension
    scheme. He said despite the low financial results last year compared to the prior
    two years, 2018 was still creditable.
  • Kina Securities Limited announced that its Annual General Meeting will be held
    at the Hilton Hotel in Port Moresby on 21 May 2019 at 10:00am.
  • Kina Asset Management Limited announced its Net Tangible Asset (NTA) for
    the month of March 2019 is at K1.34 per share. The current share price is
    discounted by K0.39 per NTA to close at K0.95 per share.
  • Based on BPNG’s assessment of key macroeconomic indicators and in line
    with the stance of monetary policy stated in the March Monetary Policy
    Statement, the Kina Facility Rate for April is maintained at 6.25%.
  • This week’s BPNG auction in Central Bank Bills were over-subscribed by
    K100.0m from the K220.0m offered. This indicated an increase in appetite for
    shorter dated securities. The weighted average yields for 28, 63 and 91 days
    all remained unchanged at 1.39%, 2.33% and 2.51% respectively. There were
    no offers for 182 days.
  • This week’s BPNG auction in Treasury Bills were over-subscribed by K30.6m
    from the K242.1m offered which indicates the continued increase in appetite for
    longer dated securities. The weighted average yields for 182 days remained
    unchanged at 4.64% while the 273 days and 364 days both increased by 0.01%
    and 0.03% to 6.06% and 6.63% respectively from the prior week. There were
    no bids for 63 and 91 days.
  • The Kina Securities Index and Kina Securities Home Index both rose by 0.1%
    and 0.8% to close at 5,189.38 and 11,871.45 points respectively attributed to
    the rise in share price of banking and financial stock Bank South Pacific Limited
    by 1.0% to end at K10.56.

pdf KFM Weekly Investment Update: Friday, 12 of April 2019