KAML earns net profit of K529,765

Business, Normal

The National

KINA Assets Management Ltd (KAML) has posted a net profit of K529,765 for the first-half of this year ending June 30.
KAML reported a gross investment return of 2.17% for the same period.
Chairman Sir Rabbie Namaliu said in a statement solid economic forecasts for Papua New Guinea and Australian economies indicated investment strategies would continue to be successful following the latest quarterly report.
“The latest report has again been very positive in terms of our investment strategy and the investments we have made in key companies and funds.
“We exceeded our performance benchmarks in all markets, apart from domestic equities.
 “The share price declines in Bank South Pacific and Credit Corp impacted on our benchmark performance, but both organisations have positive growth strategies although the market is yet to see the benefits of these strategies in the share price,” Sir Rabbie said.
He said since the report, there have been improving trends in the world’s major markets and these outcomes would flow through to the PNG and Australian markets for the benefit of investors.
“Moving forward, KAML plans to increase its investment in stock dual listed on Port Moresby Stock Exchange (POMSoX) and other securities exchanges and also continue to increase its exposure in both Australian and international equities,” he said.
On global economy, Sir Rabbie said while International Monetary Fund (IMF) downgraded forecast for every major country and reported a global output decline by 1.3% this year, growth was expected to recover to 2.5% next year – higher than preciously forecasted.
He said Australia became the only major western country to avoid recession as increased exports helped improve the growth rate and this was upgraded last April.
He said PNG economy continued to show positive growth and remained relatively cushioned from the impact of global financial crisis domestic demand and sentiments remaining strong.
 “KAML report indicated the construction boom and the optimism of PNG’s liquefied natural gas (LNG) projects going ahead will help sustain the growth and development.
 “Despite the general feeling of cautious optimism, there still remains an unforeseen internal and external risk that may have a downside effect on the economy,” he said, adding KAML was well-positioned to benefit from the global recovery.
He said the challenge remained in fiscal discipline and whether the LNG project materialised as planned while there was encouraging news in the energy industry.
KAML’s annual general meeting (AGM) is scheduled for Sept 30.