LNG prices have shown continued weakness and the cocoa price has also dropped. Business Advantage PNG’s monthly review of Papua New Guinea commodities and financial markets.

Natural gas prices over six months Source: Infomine

The LNG price is 13.8 per cent lower for the month, reports Kina Securities. This equates with a fall of over a third for the year. Oil prices, however, have risen. According to Kina, West Texas Intermediate is up 4.9 per cent for the month, and 6.2 per cent for the year.

According to Oil Industry Insight, OPEC and non-OPEC oil producers continue to support oil prices through their oil output cut deal.

‘The global oil surplus is shrinking due to a stronger-than-expected European and US demand growth, as well as production declines in OPEC and non-OPEC countries.

‘Tariff fears that caused a sell off in the stockmarket caused some profit-taking in oil.’

‘US crude oil stockpiles are down from the levels of a year ago. All these positive sentiments have helped move the market cycle emotion from hope and relief into optimism, building traders and investors’ confidence that the oil market is moving in the right direction.’

According to BSP Capital, tariff fears that caused a sell off in the stockmarket caused some profit-taking in oil after the commodity’s run-up in the wake of the surprise decline in US crude stocks.

Cocoa prices are strong. Source: Trading Economics

Cocoa

After rising by over 10 per cent in February, cocoa fell back by 17.6 per cent over March, although it remains in positive territory over the year, according to Kina.

‘Gold was unchanged over the month, while the silver price rose 1.7 per cent.’

Coffee prices were stable, falling 0.5 per cent over the month, but they are down 5.6 per cent over the year. Palm oil fell 2.6 per cent for the month, according to Kina.

Metals prices were steady. Gold was unchanged over the month, while the silver price rose 1.7 per cent. Copper weakened, falling 7.1 per cent over the month.

Equities

The stock market moved sideways. The KSI Home Index (PNG listed stocks only) rose 0.5 per cent in the month, according to Kina, and is up 0.2 per cent for the year.

‘Over the month the kina was steady against all the major currencies.’

The KSI Index (which includes dual-listed stocks) had a monthly fall of 0.9 per cent but is up 1.2 per cent over the year.

The Australian All Ordinaries Index fell by 0.2 per cent over the month and America’s S&P 500 fell by 2.2 per cent. Over the month, the kina was steady against all the major currencies.

Half-year Treasury Bills are trading at 4.72 per cent, while full-year Bills are trading at 8.04 per cent. Three-year inscribed stock has an interest yield of 9.48 per cent.