KSi did well in ’07: Tan

THE Kina Securities index (KSi) performance last year was exceptional, recording a 24.37% increase from Jan 1 to Dec 31.
Market capitalisation at the close of trade was over K36 billion as against K23 billion at the start of the year.
In light of the international concern surrounding an election year, last year’s success reflected “Papua New Guinea’s maturity as a nation and the people’s quest to excel as a people”.
Kina Securities Ltd manager- shares Rick Tan provided an outlook for this year that forecasts better prospects for investors during the year.
“I anticipate a weaker US dollar due to further cuts on US interest rate and thus, more price increases on hard commodities such as international oil and gold in the coming year.
“Asian and European stocks will have another good run on higher foreign funds portfolios’ demand mainly because of stronger prospects on China’s domestic economic surges and stronger euro currency within these regions, respectively.”
However, bigger markets such as the US and Japan will expect a slower growth and thus, a weaker stock market due to continuing disturbances on sub-prime mortgage crisis and financial hiccups and defaults.
The local economies need to revive its fiscal policy, especially the current weaker dollar policy and trade issues to sort out international trade imbalance of demand and supply, Mr Tan said.
PNG’s economy will experience another boom year in commercial and financial sectors due to stable Government’s monetary policy, he said.
Inflation will remain manageable and in general most households will expect a more vibrant and energetic growth in wages, Mr Tan said.
Domestic consumers will see most foods and goods in steady supply.
The Port Moresby Stock Exchange will have another good run on its stocks.
The KSi is expected to break 6,300 at end of the first quarter and targeting the physiological barrier of 7,000 at end of this year, he said.
However, forbidding another surprise impact of sub prime crisis on global markets, 8,000 is becoming a milestone for PNG’s stock market to establish itself as an influential regional stock market among its peers,” Mr Tan said.