Local bourse expands 70% in ’09: Yates

Business, Main Stories

PAPUA New Guinea’s local investment market grew by more than 70% last year, indicating a growing confidence from  the business sector in the domestic marketplace.
Kina Securities Ltd (KSL) said yesterday in its March bulletin the Port Moresby Stock Exchange (POMSoX) achieved a market capitalisation of K50 billion last year.
This compared with its capitalisation of K29.4 billion in 2008, representing an increase of more than 70%.
KSL chief executive Syd Yates said this showed the PNG local investment market is continuing to expand strongly.
Mr Yates said the substantial growth of the investment figures in the 12 months when the world was recovering from the most severe financial crisis in 60 years, was indicative of the growing confidence from the business sector to look towards PNG for their long-term development and exploration initiatives.
“It clearly indicates that investors are keen to support their local major enterprises and have confidence in the domestic marketplace.
“Historically, PNG investors were forced by lack of a local alternative to invest through international channels,” he said in the bulletin.
Mr Yates said while there was record overall growth of the POMSoX, there were however, fewer transactions completed when compared to the previous year as the global economic crisis continued to impact on investor and consumer confidence worldwide.
Last year, there were a total of 6,182 equities transactions on the POMSoX, compared to 8,240 recorded in 2008.
Similarly, the average number of daily transactions also dropped from 33 in 2008 to 24 last year.
He said consistent growth of the POMSoX across a period of more than 10 years was  a strong indication that locally-based operations remain high on the radar of investors within PNG and across the world.
“The POMSoX will continue to play a key role in the economic recovery process, providing local and international inves-tors with an opportunity to become directly and financially involved with some of the leading development and exploration projects currently taking place throughout PNG.”