Copper has weakened, but oil and gas prices are showing strength. Business Advantage PNG’s monthly review of Papua New Guinea commodities and financial markets.

The one-year cocoa price. Source: Tradingeconomics

LNG prices were strong, rising by 8.7 per cent over the month, according to Kina Securities. The price for LNG to Japan has risen by 16.3 per cent in 2018, according to YCharts.

Oil prices were also strong. According to Kina Securities, West Texas Intermediate was up 9.1 per cent over the month and has risen by 17.5 per cent over the last year.

There is growing pressure in the United States to gain more control over the oil price. Oilprice.com reports that the US Congress has been pushing a bill that would let America sue OPEC for oil price fixing.

‘The copper price continued to be weak.’

‘The bill called No Oil Producing and Exporting Cartels Act, or NOPEC, was first introduced in May.

‘Now, two Republican Senators and two Democrats introduced legislation  that’s aimed at allowing the government to bring lawsuits against OPEC members for antitrust violations.’

The one-year copper price. Source: Infomine

Copper

The copper price continued to be weak. It fell 12.3 per cent over the month, according to Kina Securities, which reports it is down 7.8 per cent over the year. Infomine.com reports that the price is almost back to where it was a year ago.

Palm oil prices were weaker, according to Kina, which reported a drop of 7.7 per cent over the month and a price fall over the year of 12.4 per cent.

‘The stock market moved sideways.’

Coffee fell sharply, by 7.1 per cent over the month, and the cocoa price was also weaker, falling 1.4 per cent over the month. But according to Tradingeconomics, the cocoa price is up by more than a quarter over the last year.

According to Bullionvault, gold was off 3.9 per cent over the month and 3.7 per cent over the year. Silver was down 6.5 per cent over the month and 7.7 per cent over the year.

Equities

The stock market moved sideways. The KSI Home Index (PNG-listed stocks only) slightly strengthened, rising 1.5 per cent per cent over the month.

The KSI Index (which also includes dual-listed stocks) rose 1.2 per cent over the month.

The Australian All Ordinaries Index was up 2.4 per cent over the month, while America’s S&P 500 had a monthly return of 0.8 per cent.

On the currency markets, the kina was slightly weaker against all the major currencies.

Half-year Treasury Bills are trading at 4.73 per cent, while full-year Bills are trading at 8.05 per cent. Three-year inscribed stock has an interest yield of 9.5 per cent.