Analysis: Another strong year for Papua New Guinea capital markets in 2025
The total return profile on PNGX, Papua New Guinea’s national stock exchange, remained one of the strongest in the world last year, as JMP Securities’ Lars Mortensen notes in this exclusive analysis for Business Advantage PNG.
While its share price didn’t increase in 2025, City Pharmacy Limited declared a special dividend for its shareholders following its decision to sell its Stop & Shop supermarket chain to Taylor Pacific. Credit: BAI
The year 2025 proved very strong for investors on the PNGX, Papua New Guinea’s national stock exchange.
Aggregate market turnover for the year hit a recent record of K703 million, a 55 per cent increase on 2024. This speaks to the increased relevance and importance of equity markets in PNG in connecting investors with local businesses.
A number of leading companies listed on the local bourse saw significant increases in share prices during the year, continuing the strong trend that the market has witnessed in recent times.
While the total market capitalisation of the PNGX is boosted by the inclusion of international giants Newmont Corporation and Santos Limited, a number of the locally incorporated entities have reached a point of considerable scale. BSP Financial Group now exceeds K10 billion in market capitalisation, and both Kina Securities Limited and Credit Corporation have joined the billion kina-plus club.
“The total return profile on the PNGX remains one of the strongest in the world.”
The total value of locally incorporated companies on the exchange has risen to more than K15.8 billion, a 70 per cent increase compared to two years earlier.
Top performers
The standout performer for 2025 was Credit Corporation (PNG) Limited, trading as CreditBank PNG, which saw its share price increase by more than 70 per cent during the year. Other strong performers included NGIP Agmark (35 per cent) and BSP Financial Group (23 per cent).
The outstanding performer in 2024, Kina Asset Management Limited (KAML), had another solid year with the share price climbing a strong 21 per cent. KAML’s two-year total return to shareholders between the end of 2023 and end of 2025 was a staggering 165 per cent.
When we add to this the significant amounts of dividends which investors have continued to receive, the total return profile on the PNGX remains one of the strongest in the world.
At 80 per cent total returns, investors anywhere in the world would be hard pressed to beat the performance of the PNG-based financial services group.
Out of the 9 actively traded securities on the PNGX, six achieved total returns exceeding 20 per cent. Only two securities, City Pharmacy Limited and Santos Limited recorded reductions in share prices on PNGX during 2025.
Fixed interest markets
The short term fixed-interest markets saw a long period of stable interest rates during the year before rates started to drop dramatically during September. These reductions in interest rates at the Bank of Papua New Guinea’s auctions continued for the balance of 2025, resulting in an aggregate movement for the year in the 364-day series from 8.65 per cent in January to 5.27 per cent at the end of December 2025.
“If all goes to plan, the coming year will also see at least one, perhaps more, Initial Public Offerings by new companies on PNGX. This could be the exchange’s break-out year.”
Rates have maintained these levels during the start of 2026 and this suggests interest savings on Treasury Bills alone for the PNG Government of more than PGK300 million per annum. There were similar reductions in the longer term Inscribed Stock auctions – PNG’s domestic bond markets.
Looking to 2026
During 2025, Pacific Lime & Cement (PLC) was listed on the PNGX by way of a compliance listing. Its primary listing is on the Australian Securities Exchange. We look forward to the commencement of trading in PLC and think this will be a strong performer and an interesting barometer for the industrials segment in the coming years.
Prospects for 2026 look promising, with several companies contemplating secondary listings on the exchange and PNG Air looking to exit its suspension from trading. If all goes to plan, the coming year will also see at least one, perhaps more, Initial Public Offerings by new companies on PNGX. This could be the exchange’s break-out year.
Lars Mortensen.
Lars Mortensen is co-founder and Managing Director of JMP Securities Limited, a leading securities trading and investment banking advisory firm in Papua New Guinea and one of the country’s two licensed stockbrokers.
