Market update

26 April 2021

  • Twelve Government Department heads recently signed their employment contracts witnessed by their families, the media and Governor-General Sir Bob Dadae, these include Secretary for Department of Prime Minister and Executive Council Mr Ivan Pomaleu, Secretary for Department of Communication and Information Technology Mr Steven Mataihano, High Commissioner to the Philippines Ms Betty Palaso, including Chief Executive Officer of Road and Traffic Authority Mr Nelson Terema, amongst others.
  • According to Treasury Minister, Ian Ling-Stuckey, the COVID-19 pandemic will cost the country a total K1.8b over the next 3 years, i.e. K600m annually. This impact on the budget has been integrated in the medium-term fiscal framework. Mr Ling Stuckey said the framework noted rapid drops in the size of the national budget, a decline also in the national deficit from 9.0% of Gross Domestic Product (GDP) when the global pandemic hit to 7.3% this year, down to 2.1% by 2024. This framework sees a turnaround in the country’s debt-to-GDP ratio from 51.5% this year to 50.5% in 2025 and hopefully declining thereafter.
  • Moody’s, an international credit rating agency, recently changed its stance on the PNG Government’s B2 rating from “stable” to “negative” this was attributed to decline in the country’s economic strength and debt position and high borrowing requirements. Although the negative rating will have an impact on how PNG is viewed by (offshore) lenders, PNG’s continued B2 rating reflects Moody’s assessment that PNG also has upside potential, mainly because of the country’s resources sector.
  • Petroleum Minister Kerenga Kua is confidence that the outlook for the industry is positive with global oil prices still high. It is currently more than US$60 (K207.63) a barrel. He said the Covid-19 pandemic still a threat to the industry. But in terms of the PNG LNG project, operator ExxonMobil PNG Ltd adopted a professional approach to deal with the issue.
  • Bank South Pacific Financial Group Ltd (BSP) has introduce a new digital payment service called BSP Pay. According to BSP Digital General Manager Nuni Kulu the system allows customers to make online payments securely and instantly without the use of card details. The BSP No Card Just Pay is a first of its kind in Papua New Guinea and the Pacific, which offers customers an affordable online payment service to pay for products on any registered BSP Pay merchant’s website hence, this will motivate growth in the e-commerce space and provide a suitable offering for the business community, starting from SME to large corporations.
  • Air Niugini Limited (ANL) has confirmed to additional changes for international travel this week in which passengers departing internationally will be required to be tested for Covid-19 at the time of check-in. Furthermore, ANL have engaged International SOS to conduct the testing at no cost to passengers however they must be available between two and four hours prior to their scheduled flight departure as tests take 45 minutes to be completed. Passenger will be unable to travel if tested positive at check-in however, Air Niugini will automatically re-book their travel for a future travel date at no cost.
  • This month’s auction in Government Inscribed Stock were undersubscribed by K23.22m from the total K1.0b offered. Series offered were S15022023 – Covid-19, S15052024-Covid-19, S15082026-Covid-19, S15082027-Covid-19, S15082029-Covid-19, S15112030-Covid-19 and S15022031-Covid-19 with their weighted average yields at 8.50%, 0.0%, 9.98%, 10.50%, 0.0%, 11.92% and 12.44% respectively.
  • This week’s Treasury Bill overall auction results was undersubscribed by K60.130m from the total K143.04m offered. The weighted average yields for 182 days was down by 0.01points to 4.38%, while 273 days 364 days remained unchanged at 6.04% and 7.20% from the last auction. There were nil offers for 63 and 91 days.
  • The Kina Securities Index rose 0.1% to 6,108.53 while the Kina Securities Home Index remains unchanged at 13,331.98 points
6 April 2021Collapsed
8 March 2021Collapsed
Monday 1 March 2021Collapsed
Monday 22 Feburary 2021Collapsed
12 April 2021Collapsed
Monday 15 Feburary 2021Collapsed
Monday 8 Feburary 2021Collapsed
Monday 1 Feburary 2021Collapsed
Monday 25 January 2021Collapsed
Monday 04 January 2021Collapsed
Monday 28 December 2020Collapsed
Monday 21 December 2020Collapsed
Monday 14 December 2020Collapsed
Monday 07 December 2020Collapsed
Monday 23 November 2020Collapsed