The gas price has increased over the last month, but the oil price has weakened. Cocoa and coffee prices are also down. Business Advantage PNG’s monthly overview of commodity and financial markets.

Gas prices rose by 4.3 per cent over the last month, to US$4.57mmbtu, according to Kina Securities. Over the year, however, the price has almost halved.

This may be due to increasing production. According to the Wall Street Journal, USA’s gas production is at a record high, although ‘the infrastructure needed to move the fuel around the country has not kept up.’

Oil prices have moved in the opposite way—they have weakened in the short term but are strong in the medium term. The price of West Texas Intermediate fell by 3.6 per cent over the month, but is up by 19.3 per cent over the year to date, according to Kina. It is currently trading at US$56.82.

‘There has been a big disparity between the performance of the KSi Home Index (stocks listed only in Papua New Guinea) and the KSi index (which includes dual listed stocks).’

Gold has continued to be strong, jumping by 7.4 per cent over the month to US$1,537.60 an ounce. It is up by a fifth for the year to date, according to Kina.

The silver price also rose, climbing to US$17.55 an ounce—up by 7.1 per cent for the month and 13 per cent for the year to date.

The price of silver has risen steadily over the year. Credit: Gold Bullion Australia

The copper price is down 5.5 per cent over the month and 3.6 per cent for the year to date. It is currently US$2.54 per pound.

Cocoa prices have been weak. They are down 7.6 per cent over the month and 15.6 per cent for the year. The coffee price also fell. It is down 7.2 per cent for the month and 8.6 per cent for the year to date.

Malaysian palm oil prices are down by 10.7 per cent over the month and 10.3 per cent for the year to date.

Coffee prices have been volatile and have fallen 8.6 per cent for the year to date. Credit: Market Insider

Equities

There has been a big disparity between the performance of the KSi Home Index (stocks listed only in Papua New Guinea) and the KSi index (which includes dual-listed stocks). The KSi index has surged by 31 per cent over the month and is up by 29.4 per cent for the year to date. The KSi Home Index rose by only 1.6 per cent for the month and is up by 11.3 per cent for the year to date.

Meanwhile, the Australian and North American stock exchanges were weak. The Australian All Ordinaries Index fell by 3.9 per cent over the month, but is up 15.8 per cent for the year to date, according to Kina. America’s S&P 500 was down 5.9 per cent for the month and 13.6 per cent for the year to date.

Half year Treasury Bills are trading at 4.7 per cent, while full year Bills are trading at 6.96 per cent. Inscribed stock for 2018-21 is yielding 8.04 per cent.

Compare with last month’s Commodities Update here.