PNGX: No impact on stock market

By SHIRLEY MAULUDU
PAPUA New Guinea’s National Stock Exchange (PNGX) says it has not yet seen any impact on the local stock market as a result of the outbreak of the coronavirus in China.
Chairman David Lawrence told The National this yesterday when the paper enquired whether the local stock market was also experiencing some impacts following reports of the virus outbreak that was impacting stock markets globally.
“We have not seen any apparent impact from the financial concerns about coronavirus on PNGX as yet,” he said.
“Given the nature of the PNGX market and the companies listed on it, we would not expect to see any immediate impact.
“We would expect some impact if coronavirus spread within PNG, but we are confident that the PNG authorities are actively working to prevent that situation arising.
“If there is a negative impact globally, that may flow through to PNG at some future point.
“The major markets have today rebounded after their initial concerns.”
Reuters on Tuesday reported that the latest rally in US stocks was facing a serious test, as the S&P 500 heads toward its worst loss in months on concerns over how the coronavirus will impact the global economy.
So far, the selling has been measured, with most investors confident the US economy remains in good shape and the federal reserve stands ready to provide stimulus if the situation deteriorates.
Still, worries have grown that months of placid trading may have left stocks primed for an upsurge in volatility.
However, in an ABC report yesterday, Pepperstone’s head of research Chris Weston does not think global markets have seen the last of their coronavirus jitters yet.