POM exchange upgrade eyed

THE Securities Exchange Commission of PNG (SEC-PNG) wants to modernise the Port Moresby Stock Exchange (POMSoX) sooner than later, executive chairman Christopher Hnanguie says.
He said there were 16 active stocks listed by POMSoX, with no new ones for a long while.
“Mining and petroleum companies dominate its listings, with financial services, agribusiness, retail and aviation also represented,” Hnanguie said.
In most markets, the absence of new listings is seen as a sign of pessimism in business, he said
“POMSoX needs to put in place more conducive and less stringent measures that will make it easier and more attractive for local companies to list on the exchange.
“Listing and business rules largely inherited from Australia’s ASX must be reviewed and tailored more specifically to Papua New Guinea’s needs.
“Its trading system needs upgrading to make it more user-friendly, and educate investors to use the electronic settlement system.”
Hnanguie said besides supporting POMSoX, the Bank of PNG had a capital markets development programme aimed at strengthening the governance of capital markets in PNG and possibly introduce a long overdue secondary bond market.
“At present, the only bonds available are government bonds offered through the Bank of PNG, and the absence of a secondary market is considered a constraint on the country’s credit rating,” he said.
“The enforcement of the capital markets related laws will ensure the independence of the
SEC-PNG, and will open the
POMSoX to greater competition.
“Reforms to legislation are expected to enhance the financial sector by making it more competitive in the global market.
“There have been significant changes in global financial markets in recent years as technology has evolved and international competition has increased.
“Papua New Guinea must expand our financial services sector and make our presence felt in Asia-Pacific region.
“Through the reforms, SEC-PNG hopes companies will take advantage and introduce new products to the market, including investment funds, unit trust funds, debentures and other capital market or financial products.”