Friday, June 29, 2012

Kina Aset Management Ltd posts K9.43 million loss for 2011

Kina Asset Management Ltd (KAML) chairman Sir Rabbie Namaliu yesterday (Thursday) announced a net loss after tax of K9.43 million for 2011 at its annual general meeting at the Ela Beach Hotel in Port Moresby.
KAML, however, appears to be on the rebound this year with its first quarter report showing portfoliogrowth of 5% over the final 2011 quarter to a total of K39.6 million.
KAML generated an investment gain of K2.38 million in the first quarter ending on March 31, representing gain of 6.2%.
Sir Rabbie said the KAML portfolio had in the last year experienced some negative growth in line with world markets as the larger economies of Europe and the USA endured high unemployment, sluggish markets and low business and consumer confidence.

Sir Rabbie…negative growth in 2011 because of world markets
“The European nations of Portugal, Ireland, Italy, Greece and Spain saw their credit rating deteriorate and concerns of sovereign defaults send shocks through global markets,” he said.
“Despite a series of economic interventions by their respective governments and financial institutions, international market conditions continue to struggle and remain volatile.
“The nations that had dominated the world in terms of trade and industrial development have suffered dramatic economic calamities as their domestic economies have suffered and in many cases failed because of instability.”
Sir Rabbie said the KAML investment portfolio contracted 24%, or approximately K12 million with the A&P/ASX 50 down 13.14% and the KSI down 22% in the 2011 year.
“The decrease in the portfolio value has been attributable to these international factors as well as the strong appreciation of the PNG Kina against other major currencies, contributing further to the negative impact on the international investment portfolio.
“KAML recorded a net loss after tax of K9.43 million for the year ending December 31, 2011.
Sir Rabbie said PNG had been fortunate enough to remain relatively unscathed from the effects of the global financial crisis and the slow recovery affecting the more-developed economies of the world.
“While it can be said that we are not immune to the global slowdown, the situation does provide us with an opportunity to learn from those challenges faced the US and Europe,” he said.
“However, the economic and financial turbulence in Europe and the US has allowed the epicenter of global market forces to shift closer to home with the larger developing economies of China, India and Malaysia emerging as the new dominant market forces, building and supplying the needs of a global market.
“These nations have been supportive of the growth and stability of PNG and to help our nation expand quickly in sharing the mineral and energy boom in the Asia-Pacific region such as our very own LNG projects.
“The PNG government and Central Bank, in their efforts to assist in the reigning in of domestic inflation, have continued to tighten monetary policy and bolster the PNG economy.”

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