by Leanne Jorari – EM TV News, Port Moresby
Despite first quarter market uncertainty on both the domestic and international fronts, Kina Asset Management Limited recorded an investment gain of 1.4 per cent, following on from their 2015 net profit of K4.74 million.
The POMSOX and ASX listed company held their 2016 Annual General Meeting in Port Moresby this week.
In spite of the country’s volatile economic environment, Kina Asset Management Limited has continued on with its momentum from 2015.
Chief Executive Officer, Syd Yates, told shareholders that 2015 had been a period of great success and dramatic change for the company, stating that the K350 million acquisition of Maybank in September last year had doubled the size of the company’s banking business.
The company recorded an investment gain of 1.4 per cent, or K0.7 million for the quarter, following an appreciation of the Australian Dollar and the subsequent decline of the Kina, depreciating to around 7 per cent.
Detailing the portfolio, Board Chairman, Sir Rabbie Namaliy, said that the company maintained a larger international exposure in congruence, with the goal of providing local investors a level of exposure to international markets.
Notwithstanding, he said Bank South Pacific and Oil Search remained the largest constituents, both of which have contributed to the stability and growth of the portfolio throughout the years.
Commenting on the global economy, he said that growth is expected to be restrained as major economies continue to diverge.
On the domestic front, the country is feeling the effects of the decline of commodity prices in the wake of the LNG construction era.