Monday, November 22, 2010

KAML: PNG economy performing along forecast



PAPUA New Guinea’s economy is performing broadly in line with the forecasts outlined in the March 2010 monetary policy statement, according to fund manager Kina Asset Management Ltd last Friday, The National reports.

Significant investment opportunities have emerged in recent times in both local and the Asian regions as a result of the recovery of dynamic economies, according to KAML.

“KAML is well positioned to benefit from the regional bounce back of current investments and the implementation of new investment opportunities which continue to emerge,” chairman Sir Rabbie Namaliu said.

He said while real GDP growth had been revised downwards to 7.5% from 8.5% this year, this mainly reflected the delay in the start of production from the Ramu nickel-cobalt project.

Sir Rabie released the KAML third quarter review last Friday.

“The construction of the LNG project infrastructure, now well underway, will underpin growth in the period ahead.

“The sales revenue generated will represent a significant inflow into the domestic economy and also the region,” he added.

Sir Rabbie said after its weakness early in the quarter, KAML had  benefited from the pick-up in stock markets late in the September quarter, a trend that has continued into the current month.

“The year-to-date performance of all asset classes has exceeded their respective benchmarks,” Sir Rabbie said.

He said PNG is currently among the emerging market countries that were experiencing recovery and growth faster than their more advanced counterparts, adding that it was important to relate the market overview to the implications for the KAML fund.


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