KFM Weekly Investment Update: Friday, 26 April 2019

  • Prime Minister (PM) Mr Peter O’Neil and Government delegates arrived in China to attend a second “One Belt and One Road” forum, which strives to increase agriculture exports from rural areas. Papua New Guinea (PNG) is among countries attending the forum to discuss improvement in infrastructure and supply chains required to enhance exports in agricultural and other productions. The initiative was initially discussed during Chinese President Xi Jinping’s state visit to PNG last year. PM O’Neil stated this needed to continue in order to increase PNG’s internal infrastructure development through greater investment, while at the same time strengthening the country’s bilateral connections with partnering countries to make transportation more efficient.
  • According to an official, the 58-megawatt gas-fired power plant developed by NiuPower for Port Moresby is expected to save PNG Power Ltd (PPL) K100.0m annually when it comes online. NiuPower Chief Executive Officer (CEO) Mr Richard Robinson said the power station used six high-efficiency reciprocating gas engine generator sets which can match whatever load PPL wishes to draw and will save the nation costs. Oil Search Managing Director Mr Peter Botten added that when in operation, the power station would be capable of supplying around 75.0% of the average load of the Port Moresby electricity grid, fueled by a cleaner energy source.
  • Teachers Savings and Loan Society’s (TISA) announced its net operating surplus of K20.9m for the 2018 financial year compared to the prior corresponding period of K35.8m. TISA Group CEO Mr. Michael Koisen highlighted that the capital losses that resulted in lower profit was mainly attributable to its underperforming investments. Despite the loss, TISA declared an interest crediting rate of 7.0% to be paid to its members as an additional bonus interest.
  • PNG DataCo Managing Director Mr Paul Komboi, reported that many Internet Service Providers (ISP) have been connected to the Kumul submarine cable since last month. ISPs can now have more volume, faster internet speeds, lower latency (delay), better reliability and better data pricing. He said DataCo only set wholesale price for the services they offered, it was up to the ISPs to package their retail offering including the setting of its retail prices for their products. Digicel, Bmobile, Telikom, Datec, Digitec, Global Technologies and Click have already been connected to the Kumul submarine cable.
  • The Asian Development Bank (ADB) approved a cover facility of around $100.0m called the Pacific Renewable Energy Program which aims to give financial support such as loans, guarantees and letters of credit to overcome constraints to private sector investments in renewable power projects in Pacific Island countries. This program will be implemented by ADB’s Pacific Department and Private Sector Operations Department (PSOD). According to PSOD’s Director General Mr Michael Barrow, the program is designed to work within its limits such as shortage of bankable power purchase, uncertainties over foreign currency availability, convertibility and perceived political risks and encourages private sector investment through an innovative blend of ADB’s direct private sector lending This week’s BPNG auction in Central Bank Bills were over-subscribed by K7.0m from the K442.4m offered. The weighted average yields for 28, 63 and 91 days remained unchanged at 1.39%, 2.33% and 2.51% respectively. There were nil offers for 182 days This week’s BPNG auction in Treasury Bills were under-subscribed by K17.7m from the K148.2m offered. The weighted average yields for 182 and 273 days remained unchanged at 4.71% and 6.06% respectively. While 364 days rose
    by 0.01 point to 6.66% from the prior week. There nil offers for 63 and 91 days The Kina Securities Index and Kina Securities Home Index both close high at 5,189.54 and 11,876.11 points respectively, this mainly attributed

pdf KFM Weekly Investment Update: Friday, 26 of April 2019