Weekly Market Insights (03 - 10 July 2026)

Jul 13
2 min read

Global Markets

Global markets delivered mixed results, with strength in US technology stocks and Hong Kong equities offset by weaker performances across Europe, Japan, and Australia as investors weighed inflation risks, geopolitics, and the interest-rate outlook.

Equities:

- US markets were mixed but positive overall, with gains in the S&P 500 and Nasdaq driven by technology and AI-related stocks, while the Dow Jones edged lower.
- European equities declined, as renewed Middle East tensions and higher oil prices weighed on investor sentiment.
- Asian markets were mixed, with Hong Kong surging on strength in Chinese technology stocks while Japan weakened due to softness in semiconductor and AI-related shares.
- Australian equities slipped modestly, affected by weaker growth expectations and cautious investor sentiment.
Bonds:
- US, UK, and Australian bond yields rose, as investors increasingly expected interest rates to remain higher for longer.
- Chinese bond yields declined, supported by accommodative monetary policy and ongoing economic support measures.
Currencies:
- The US dollar strengthened slightly, supported by inflation concerns and geopolitical uncertainty.
- The Australian dollar recorded the strongest gain, while the euro also edged higher.
- The Chinese yuan weakened marginally amid concerns about slowing economic growth.

Commodities

Commodity markets were mixed, reflecting ongoing supply concerns and differing demand conditions.

Copper and aluminium gained, supported by tighter supply conditions and improved investor sentiment.
Crude oil rose strongly, driven by renewed Middle East tensions and concerns over potential supply disruptions.
Coffee and cocoa were standout performers, with cocoa surging more than 20% and coffee rising over 10% due to weather-related supply risks and harvesting delays.
Gold, natural gas, and coal declined, reflecting stronger yields, changing demand conditions, and softer import demand from Asia.

PNG Local Market

PNG’s market remained active but concentrated, with most trading centred on Pacific Lime and Cement (PLC).

Stock Market:
- PNGX recorded total turnover of approximately K6.69 million from 4.25 million shares traded.
- PLC dominated activity, accounting for around 97% of traded volume and 92% of market turnover.
- Share price performance was mixed:
  - BSP gained 0.18% to K27.95
  - STO edged up 0.04%
  - KSL declined 2.27%, making it the weakest performer
  - CCP and PLC were unchanged.
- Trading outside PLC remained relatively subdued, although CCP and KSL contributed meaningful turnover.
Corporate Update:
- Kina Securities (KSL) forecast FY2026 NPAT of PGK132–138 million, representing expected growth of 15–20% over FY2025, supported by revenue growth across core businesses.

Treasury Bills

The Treasury bill market remained stable and well-supported, with only minor yield movements across maturities.

Total issuance amounted to K270 million, dominated by the 364-day tenor (K200 million).
Yields remained broadly stable:
- 182-day: 4.88% (unchanged)
- 273-day: 4.98% (+0.01%)
- 364-day: 5.01% (+0.01%)
Maturing securities totalled K225.8 million, below the amount offered, indicating sufficient market liquidity and continued investor demand.
Stable yields reflected ongoing confidence in government securities despite higher issuance volumes.

Overall Takeaway

Global markets were shaped by strength in technology stocks, rising bond yields, and renewed geopolitical tensions. While equities were mixed across regions, commodities such as cocoa, coffee, and oil posted strong gains. In PNG, market activity remained solid but highly concentrated in PLC, while Treasury bill auctions continued to demonstrate stable demand, ample liquidity, and investor confidence in government securities.

For a detailed breakdown of market performance, economic data, and treasury auction results, download the complete report.