Red days continue for PNG stocks

THREE straight days of losses on Wall Street have seen most companies on PNGIndustryNews.net’s portfolio sink into the red despite yesterday’s rally.

Lihir Gold posted gains on the Port Moresby Stock Exchange, putting on 25% over the week to close at K5 though it was down A8c to A$1.94 on the Australian Securities Exchange.

Meanwhile, PNG's largest oil producer Oil Search made gains on both exchanges, putting on K1.2 to K9.2 on POMSoX and A7c to $A4.91 on the ASX.

In Canada, Madison Minerals took the bottom spot with its shares shedding 41.67% of their value to close at C7c while Frontier Resources shared the same unwanted honour on the ASX with its 43.33% drop to 1.7c.

Oil prices fell to a 22-month low on Wednesday before making a partial recovery on Thursday though Singapore's Tapis crude shed almost $3.50 to close at $54.68.

Last night's price rise came as United States stock markets rebounded. The Dow Jones Industrial Average climbed 6.67% to 8835.25 points, while the Nasdaq also increased 6.5% to 1596.7 points.

"The stock market has firmed up, which is giving the energy market some strength,'' Bloomberg quoted Alaron Trading senior trader Phil Flynn as saying.

"It's clear that an awful lot of bearish news has already been priced in," he said.

Prices received more support from a US Energy Department report showing that oil stockpiles rose 22,000 barrels to 311.9 million barrels last week. Analysts were predicting a boost of 1.1MMbbl.

On the London Metal Exchange, copper prices rallied at the start of the week but things turned nasty later on. Spot copper strengthened from $US3731.50 to $3844 per tonne on Monday before dropping to its lowest level since mid-2005 at $3583/t on Tuesday.

It has since moved a little higher to $3634/t.

Spot nickel meanwhile is still higher than its dire lows of nearly $9000/t, and traded between $10,812 at the start of the week, dropping to $10,359 and then recovering in Thursday's session to $11,317 in some small measure of good news for nickel miners.

Gold continued to track the oil price, peaking early in the week at $766.80 an ounce before dropping to a low of $700.85, its lowest price since September 2007.

Towards the end of the week it recovered to trade around the $730 mark but still shows no signs of breaking past $800 as the oil price continues to drift downwards, despite the financial turmoil continuing to decimate world markets.

For overseas investors seeking to buy stocks on the POMSoX, contact Kina Securities shares advisor Michael David in Port Moresby on (675) 308 3825

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