PNGX

Minister Richard Maru outlined the objective when announcing the new PNGX Corporate Debt Market. 

The current total market capitalisation is K135 billion. The target represents an increase of 350 percent.

“We would like to thank the Minister for his final approval of the new corporate debt Market,” said PNGX Group Chairman, David Lawrence. 

“We would also like to thank the International Finance Corporation (IFC), the ADB Private Sector Development Initiative (PSDI) and the Securities Commission of PNG for their work and support.”

PNGX’s Business Rules, which govern the trading and settlement of all trades on the market by stockbrokers, will be amended to require settlement on the second day after a trade (T+2), which is faster than the current 3 days (T+3).

The proposal was released for consultation in October 2022 with the new Listing Rules.

The change from T+3 to T+2 brings the PNG market in line with markets around the world.

T+2 means quicker payment for investors when they sell shares. It also reduces the risks to investors, stockbrokers and PNGX.

The new Listing Rules are a key step towards the development of a more effective secondary market in Papua New Guinea. They contribute to ensuring that PNG has a world-class capital market that is internationally respected and recognised.

PNGX’s Listing Rules govern the listing of issuers and the quotation of securities, continuous disclosure obligations and some aspects of a listed entity’s conduct.

All companies listed on PNGX are required to comply with the Listing Rules.

PNGX is proposing to introduce a new Corporate Governance Code for the guidance of boards of listed issuers.

The proposed Code contains 17 standards. Within each of the 17 standards are a number of recommendations.

Each PNGX listed company is required under the Listing Rules to have corporate governance policies, which are appropriate having regard to the nature and scale of its operations. Each company should address each recommendation set out in the standards.

The previous uncertainty about the Chairmanship of the Securities Commission has been a significant barrier to both development of the capital market in Papua New Guinea and the ability of companies, large and small, to access capital.

“Resolution of the leadership of the Securities Commission provides the certainty the market has been seeking and needing. PNGX thanks Prime Minister James Marape for his leadership in brokering the resolution to this long-running dispute,” said PNGX chairman, David Lawrence.

JMP Securities Limited (JMP) was recognised as a new participating organisation, also known as a stockbroker, on 28 September 2020. JMP commenced trading on PNGX on 6 October 2020.

PNGX Chairman, David Lawrence, said: “PNGX is very pleased to have JMP Securities joining the market as a new stockbroker. It reflects confidence in the growth opportunities presented by PNG and the investment opportunities available to PNG investors.

A stock market index is a measurement of the performance of the stock market. It is calculated based on the prices of stocks included in the index and is used by investors and investment managers to compare the return on investments.

On November 1^st, PNGX will implement the following six equity capitalisation indices to reflect the PNGX market:

As the National Numbering Agency, PNGX Markets Limited (PNGX) will be responsible for issuing the unique International Securities Identification Numbers (ISINS) for all PNG government and company securities, such as shares and Government Inscribed Stock.

The International Securities Identification Number (ISO 6166) is the recognised global standard for unique identification of financial instruments. ISINs are used to identify most types of financial instruments, including equity, debt and derivatives.

PNGX (formerly known as POMSoX) is proposing to establish a new PNGX debt market for trading of government and private sector debt securities which will operate alongside the existing PNGX equity market.