The National, Tuesday 14th May 2013
KINA Assets Management’s Ltd (KAML) investment gained K3.2 million, a return of 7.2% for the first quarter of this year.
KAML chairman Sir Rabbie Namaliu said yesterday:
“The increase of K3.2 million in the investment portfolio to K45.5 million was due to valuation gains from listed securities and dividends.
“The KAML investment strategy guides the fund manager, Kina Fund Management Ltd, in its investment activities and it contributes towards achieving a positive rate of return for the investment portfolio.”
Sir Rabbie said international equity markets were generally positive in the first quarter, although some markets such as some European markets experienced severe volatility.
“The domestic equity market (POMSoX) was generally stable, with some companies’ shares increasing in price such as Credit Corporation (CCP) and City Pharmacy.
“Overlaying international investments is the currency effect and the value of international investments was generally helped by the fact that the kina fell in value in the first quarter.”
In a comprehensive economic summary of the global economies – the United States, Asia, Australia and PNG – Sir Rabbie said there were encouraging conditions with continuing improvement, especially with share prices substantially above their low points.
He added that while global GDP (gross domestic product) was growing below average, it was evident that the downside risks appear to be reduced and as a result, international stock markets had an optimistic first quarter this year, which saw developed markets rally.
“The Eurozone continues to feel the tremors of their sovereign debt issues while the US is now experiencing a moderate expansion, while growth in China has stabilised at a fairly robust pace,” Sir Rabbie said.
“Around Asia generally, growth was dampened by the earlier slowing in China and the weakness in Europe, but again there are signs of stabilisation.
“Investors’ reallocation back into stocks gained traction during the first quarter of this year with equity markets seeing strongest inflows for more than five years.”