Santos’ departure will have negative impact on market: Barker

SANTOS will send a negative message on PNG if it is not willing to be listed on the PNG Stock Exchange (PNGX) after the proposed merger with Oil Search PNG Ltd is finalised, an economist says.
National Research Institute’s Peter Barker told The National that given Oil Search’s scale in the market, it would have a major impact.
“It’s a strange time in some of the main markets, with some companies choosing to rationalise their listings, with a prospect,” Barker said.
“For example, BHP delisting from the London stock exchange to rationalise and cut overheads and market discrepancies, even though London has always been the major market for mining stocks.
“For a larger Australian company, the advantages of administrative and market simplicity to list only in Sydney, especially with a relatively small trade coming from the Port Moresby exchange, may be strong.
“However, with Oil Search’s relative scale on the Moresby market and the company’s primary business focus being in Papua New Guinea, it would have a major impact on the PNG market if it withdrew.