Gas prices have surged over the last month, returning to the price level of a year ago. Oil prices are also up strongly over the month. Coffee prices have moved sideways, while cocoa prices have fallen and palm oil prices are slightly down. Business Advantage PNG’s monthly overview of Papua New Guinea’s commodities and financial markets.

Natural gas prices are recovering but still well below 2014 peak Source: Infomine

Gas prices have surged over the last month, rising by 28.7 per cent, according to Kina Securities. Japan/Korea LNG prices are US$6.98 per million British Thermal Units (BTU). The monthly jump means the price is 0.6 per cent above where it was a year ago.

Oil prices are also showing welcome signs of strength. West Texas Intermediate is trading at US$50.85 a barrel, according to Kina Securities. This is up 14.3 per cent for the month and 38.7 per cent for the year.

There are reports that China’s demand for imported crude has seen robust gains this year, rising 13.5% in the first eight months, largely to replenish inventories.

‘Silver prices also fell. They are down 11.7 per cent for the month.’

The recent upward trend in prices has been positive for Oil Search, which reported that revenue for the three months through to September rose 16 per cent to US$309.5 million, although the quarterly result was 18 per cent lower than the same period a year earlier.

Minerals and other commodities

Gold has weakened, falling by 5.5 per cent over the month to US$1,267.70 an ounce. However, the precious metal is still up by 19.4 per cent for the year.

Five year silver price Source: Silverprice

Silver prices also fell. They are down 11.7 per cent for the month but, like gold, they are up for the year: by 25.7 per cent.

Other commodities prices are moving with a range. The copper price is down 5.1 per cent over the month, according to Kina, but only down 2.7 per cent for the year.

Cocoa prices have continued their fall. They are down 4.5 per cent over the month and 15.6 per cent for the year.

Coffee prices, however, are strong. They are up 3.1 per cent for the month and 26.2 per cent for the year. This is good news considering this year’s improved crop.

‘A standout stock for the month was Steamships Trading Company, whose price rose 41.5 per cent over the month.’

Malaysian palm oil prices are down by 3.6 per cent over the month, but still up 19.4 per cent for the year.

Financials

On the Port Moresby Stock Exchange (POMSoX), the KSi Home Index (stocks listed only in PNG) is up 10.9 per cent for the month, while the overall KSi index (which includes dual-listed stocks) is up 40.8 per cent for the year.

The Australian and North American stock exchanges have moved sideways.

Three month share price of Steamships Trading Company Source: ASX

A standout stock for the month was Steamships Trading Company, whose price rose 41.5 per cent over the month. The stock has risen by 15.4 per cent over the year.

Dual-listed Oil Search also rose by 5.9 per cent over the month, an annual gain of 28 per cent.

Newcrest Mining shares were down slightly over the month, falling by 2.2 per cent. But they are up 73.1 per cent over the year.

Half-year Treasury Bills are trading at 4.72 per cent, while full-year Bills are trading at 7.72 per cent.