Photo credit: PNGX
The chairman of the PNG Stock Exchange (PNGX), David Lawrence, stated that total transaction figures on the PNGX decreased last year.
The 12 listed firms had a combined market capitalization of K91.89 billion.
PNG Air Ltd, he added, was still suspended for failing to present audited financial statements.
Niuminco, a mining exploration firm, has also been put on hold.
“We are seeing an increase in the number of trades on the market but the overall value and volume is down a bit on last year,” Lawrence said.
Six of the 12 firms are listed on both the PNGX and the ASX (Australian Securities Exchange).
Newcrest, Oil Search, Bank South Pacific Financial Group Ltd, Kina Securities, Coppermoly, and Steamships are among the companies involved.
According to Lawrence, the influence of the Coronavirus (Covid-19) on the market and the status of the PNG economy varies depending on the industry.
“Companies with activities in tourism and logistics have been impacted while others such as in NGP Agmark in agriculture have seen positive results.
“The impact of Covid-19 will be negative on the market next year, especially if the vaccination rate remains at its very low levels.
“The ongoing foreign exchange restrictions are also a negative for overseas investors looking at PNG listed companies.”
The general election in 2022, according to Lawrence, will have an influence because markets are normally flat throughout the uncertain time leading up to an election.
“Two positive signs for 2022 are an increase in the number of enquiries about listing during 2021 and an increase in enquiries from potential new small local investors,” he said.
“We believe there are a small number of local companies currently working towards listing on PNGX in the next one to two years, which would be good for the market and will open up new opportunities for investors.”
He stated that the PNGX is developing new goods and services.
Reference: Dale, Luma. The National (23 November 2021). “PNGX says trade declined in ’20”.
