PNG STOCKS OUT­PER­FORM IN­TER­NA­TIONAL SHARES

Business Advantage Papua New Guinea - - Feature -

Heav­ily weighted as it is with dual-listed min­ing and petroleum stocks, it was no sur­prise that the over­all value of Pa­pua New Guinea’s bourse, the Port Moresby Stock Ex­change (POMSOX), fell sig­nif­i­cantly dur­ing 2014. The year 2014 was a bad one for re­sources stocks glob­ally, with fall­ing oil and min­eral prices wip­ing con­sid­er­able value off min­ing and gas com­pa­nies across the board. PNG’S main mar­ket in­dex, the Kina Se­cu­ri­ties In­dex (KSI), closed at 3,496.88 points, fall­ing off 375 points or 9.7% dur­ing the year, while the ex­change’s weighed mar­ket cap­i­tal­i­sa­tion fell by K5.9 bil­lion (US$2.23 bil­lion), to K53.3 bil­lion (US$20.1 bil­lion). Ma­jor stocks Bank of South Pa­cific (BSP) and Oil Search (OSH) fell by 11% and 8.7% re­spec­tively over the year, but one no­table com­pany to buck the trend was New Bri­tain Palm Oil (NBO), which gained an im­pres­sive 73.3% in 2014 due to a gen­er­ous takeover of­fer from Malaysia’s Sime Darby Plan­ta­tion that was com­pleted in late Fe­bru­ary 2015. Its on­go­ing list­ing was un­der re­view at the time of writ­ing. Set­ting aside stocks that had their main list­ing over­seas, POMSOX per­formed rather bet­ter than the over­all bourse. Lo­cal stock bro­ker Kina Se­cu­ri­ties’ Home In­dex mea­sures the per­for­mance of stocks that are only listed on POMSOX. This in­dex ac­tu­ally rose some 17% dur­ing 2014, re­flect­ing the rel­a­tively strength of the do­mes­tic econ­omy. The Pa­cific’s largest ex­change also got a lot busier in 2014, with the value of trades in­creas­ing by 231% on the pre­vi­ous year, and the num­ber of trans­ac­tions up 4.6%.

At the time of writ­ing, New Bri­tain Palm Oil’s list­ing on POMSOX was un­der re­view, fol­low­ing its ac­qui­si­tion by Sime Darby Plan­ta­tion.

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