Kina reveals net profit of K8.4mil

Kina Asset Management Limited has announced a net profit of K8.4 million for 2017 due to strong performances in international sharemarkets, says chairman Sir Rabbie Namaliu.
Sir Rabbie, during the company’s general meeting yesterday in Port Moresby, said the weakening of the PNG Kina against major currencies also added to the profit.
Other highlights include an 11 per cent increase in investment portfolio from K57 million at the end of 2016 to K63.4 million by the end of last year.
He said this was the company’s strongest outcome in the past four years.
He said 38 per cent of the company’s investments are local while the other 62 per cent is invested overseas. He said the company has about 49,000 shareholders.
“With respect to our domestic investments, gains were mainly driven by energy stock with Oil Search yielding a total return of K906,000,” Sir Rabbie said.
“A strong contribution was (also) made by Bank South Pacific with a return of K2.2 million”
“Notable performers internationally are Australian pharmaceutical stock CSL limited and Vanguard International contributing K1.2 million and K1.6 million respectively”
“As a result of a good financial year, we are pleased to announce a final dividend of 5 toea for the 2017 year”
Sir Rabbie said the company has achieved a positive investment return of K808,579 for the first five months to May.
He said this was despite international challenges such as the Royal commission into banking in Australia, increasing bond yields in the United States and the threat of global trade war.
Sir Rabbie said foreign exchange shortage continues to challenge businesses locally.
He said the company expects the Apec meetings to provide a short-term boost but the economy will remain subdued for the rest of 2018.
“Against these expectations we will continue our approach to investment and remain focused on capital preservation through value investing and income generation.”