Capital Markets

Although small by international standards, Papua New Guinea’s capital markets have performed well in recent years, despite facing notable macroeconomic challenges. Key indices on the Port Moresby Stock Exchange expanded steadily in 2017, supported by robust growth of two of its largest listed companies, Bank South Pacific and Oil Search, and an increase in domestic turnover. A series of regulatory reforms launched in 2015 – including the Capital Markets Act, Securities Commission Act and Central Depositories Act – have started to come into force, laying the foundation for stable growth and market modernisation. Efforts to upgrade the stock exchange were also supported by the launch of a new Nasdaq trading platform in late 2017, and the Bank of PNG, the central bank, is considering the adoption of an electronic bond auction system. This chapter contains an interview with Greg Pawson, CEO, Kina Group.