Govt eyeing review of POMsoX ownership

By LEMACH LAVARI

The Government will ensure the Port Moresby Stock Exchange ownership is open to more investors, according to Security Commission chairman Christopher Hnanguie.
Hnanguie told The National the stock exchange (POMsoX) was owned largely by Kina Securities and Bank South Pacific Capital with 48 per cent each.
The Sir Anthony Siaguru Foundation and Gerea Aopi own 2 per cent each of the remaining shares.
Hnanguie said the commission was working on guidelines to ensure ownership of the POMsoX was spread between many investors.
He said this would build confidence in the market and was part of the commission’s aim to create fair trade among investors.
He said POMsoX was a company and by law would be regulated by the Government.
Kina Securities chief executive Greg Pawson said Kina and BSP Capital had to step in to ensure the POMsoX continued to be viable.
“We are in support of the commission and believe that regulations must address structural issues in the financial market in PNG,” he said.
Pawson said particular issues included “foreign exchange, free flow of currency and a lack of market participants like brokers or financial advisers”.
Hnanguie said the commission wanted to expose the capital market to the public.
“The capital market is an alternative to keeping your money in the bank,” he said.
“People can trade in the capital market and profit from it.
“Our role is to ensure that trading is done fairly to protect those who trade in the POMsoX.
“Financial security assets such as shares, stocks and bonds are traded on the capital market.
“These assets are traded for a period of one year or more.”
Hnanguie said capital markets were drivers of many Asian economies and PNG can benefit from it too.
Part of the commission’s strategy was to have three levels of trading in the POMsoX: A top level where corporations trade, a middle level for small to medium enterprises and one for individuals and smaller businesses.