Duma dents InterOil shares

MARKETS have made some recovery from the brutal end of last week but comments from Petroleum and Energy Minister William Duma this week have wounded InterOil shares.

In a sign that markets might become a little less volatile, eurozone debt fears were abated after Germany's parliament voted in favour of boosting the funds for the European Financial Stability Facility.

This fund, which has been labelled as Eurotarp after the US Federal Reserve Bank's Troubled Asset Relief Program implemented since the GFC, will be boosted to 211 billion euros ($A294.6 billion) from the previous amount of 123 billion euros.

With strong gains on Wall Street and in European stocks overnight, the Australian market is not expected to have another difficult Friday.

But given some of the damage earlier this week, most of the key commodities for PNG have lost ground overall.

Spot gold was trading at $1631.43 an ounce this morning, 1.3% down from the end of last Friday.

London Metal Exchange cash copper prices closed at $7210.25 a tonne last night, about 1.8% down from the end of last week.

But LME cash nickel prices were up 2.1% to $18,640/t last night over the same period.

Singapore Tapis crude closed at $115.31 a barrel overnight, a fall of 1.4% from last Friday.

Most PNG-flavoured stocks had a difficult week, but what InterOil faced this week was quite unexpected.

Duma's decision to publicly criticise the Gulf LNG project has hurt investor confidence in InterOil shares and they have fallen by more than 9%.

There are some concerns that government ministers should do more to protect PNG's reputation as a safe place to invest, even though Prime Minister Peter O'Neill has already said that his government does not seek to make life difficult for foreign investors.


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