PNG equity market records robust week of trading

PAPUA New Guinea Exchange Market Limited in its weekly market report has indicated that the Papua

New Guinea equity market recorded a robust week of trading, with total trade value reaching K9.93

million,

PNGX reported a notable increase from the previous week's K8.95 million. Daily turnover was

consistently strong, peaking on Monday, June 1 with K2.83 million and remaining above K1.3 million

each subsequent day.

Five securities traded during the week, led by BSP, which contributed K6.86 million of the total value,

followed by KSL with K1.93 million and PLC with K0.92 million. Price movements were broadly positive

across most actively traded stocks. KSL delivered the strongest weekly gain, rising 7.69 per cent from

K4.55 to K4.90, while PLC advanced 5.26 per cent to K1.40. BSP edged up 0.18 per cent to K28.00, and

STO added 0.45 per cent to K22.30.

In contrast, CPL remained unchanged at K0.79. The week ending also delivered a record-breaking

momentum for KSL and PLC with an all time high of K4.90 and K1.40 respectively, indicating continuous

growth in both equity with positive sentiment among investors.

The total number of trades increased to 46 from the prior week's 41 trades, reflecting improved investor

participation. Notably, CCP, KAM and NGP recorded no trades during the week, indicating selective

interest rather than broad-based buying.

PNGX said on the global stage, equity markets during the week of June 1 to June 5, 2026 were shaped by

easing geopolitical tensions in the Middle East and renewed focus on central bank policy. Following the

previous week's volatile US-Iran ceasefire negotiations, markets entered June with cautious optimism

after reports that a formal 60-day truce had been signed, significantly lowering the risk premium

embedded in oil prices.

PNGX said Brent crude fell below US$90 per barrel for the first time in two months, providing relief to

import-dependent economies and reducing immediate inflationary pressures. In the United States, the

S&P 500 and Nasdaq Composite rallied to fresh record highs, driven by strong artificial intelligence-

related earnings and better-than-expected May jobs data, which showed 272,000 new positions added -

comfortably above forecasts.

It said Asian markets mirrored this strength, with Japan's Nikkei 225 briefly touching 67,000 points

before settling slightly lower, while South Korea's Kospi continued its semiconductor-led ascent.

European indices were more measured, as the European Central Bank signalled a potential rate cut later

in June.

For PNGX-listed equities, the primary transmission channels remain dual-listed stocks such as Santos

and BSP, whose valuations are sensitive to global energy prices and broader risk appetite. The decline in

oil prices, while a headwind for Santos' near- term revenues, is offset by the positive signal it sends to

PNG's overall import bill and fiscal stability. Moreover, the sustained risk-on environment in global

markets typically supports foreign portfolio flows into frontier markets, potentially lifting liquidity and

valuations on the PNGX.

Turning to the domestic economic environment, PNGX said Papua New Guinea continued to grapple

with persistent foreign exchange shortages, moderate inflationary pressures, and a kina that remained

under structural depreciation pressure.

PNGX said the week's exchange rate data showed a mixed performance: the kina appreciated 0.47 per

cent against the Australian dollar to 0.3215, but depreciated 0.13 per cent against the US dollar to

0.2289. This divergence reflects the Australian dollar's own weakness amid shifting commodity price

expectations, while the US dollar remained relatively firm on resilient US labour market data.

More broadly, PNGX said the kina's gradual decline was driven by the persistent gap between foreign

currency demand and supply, as export receipts - particularly from oil, gas, and minerals - remained

vulnerable to global price volatility. The easing of Middle East tensions, if sustained, would lower PNG's

fuel import costs and ease pressure on the balance of payments.

However, PNGX said any renewed escalation - such as a breakdown of the US-Iran ceasefire or further

disruptions in the Strait of Hormuz - would immediately spike oil prices, worsen PNG's trade deficit, and

accelerate kina depreciation. Cross-border tensions, including the ongoing Russia-Ukraine war and US-

China trade frictions, add further layers of uncertainty, affecting global commodity demand and the cost

of imported capital goods.

PNGX also said that several company announcements were made during the week.

On 1 June, NGIP Agmark released a general PNGX announcement and its annual general meeting results.

On 2 June, CGA issued a rectification of its FY2025 annual report along with revised financial statements,

while KSL filed an Appendix 3G regarding unquoted securities and a notice of change in director's

interest.

On 4 June, Newmont Corporation submitted Form 4 filings for two executives, Peter Toth and Natascha

Viljoen, while CGA released its AGM chairman's speech, CEO's address, and meeting results.

Kina Securities also filed further notices of change in director's address and an additional Appendix 3G

for the issue of unquoted equity securities.

These announcements largely reflect routine corporate governance and compliance activities, with no

major market-moving news. The overall tone of the week was one of steady activity and selective price

appreciation, supported by a more benign global geopolitical backdrop. Investors are encouraged to

conduct their own research and consult their stockbrokers before making any investment decisions.

Story by Sam Vulum