Weekly Market Insights (15-22 May 2026)

2 days ago
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Global Markets

Global markets were broadly positive, supported by strong earnings, technology sector momentum, and easing geopolitical risks, although regional differences persisted.

Equities:
- US, European, and Japanese markets advanced, with the S&P 500 rising on strong corporate earnings and continued AI/technology momentum.
- Australia posted modest gains, supported by improving sentiment and expectations of a pause in interest rate hikes.
- Hong Kong declined, weighed down by profit‑taking and cautious sentiment ahead of inflation data.
Bonds:
- Global bond yields fell (US, UK, Australia), reflecting easing inflation pressures and softer interest‑rate expectations.
- China’s yields remained low and stable, supported by accommodative policy settings.
Currencies:
- The US dollar remained firm, supported by rate expectations.
- The Australian dollar and Chinese yuan weakened slightly, while the euro remained stable amid mixed economic signals.

Commodities

Commodity markets were mixed, reflecting shifting demand and easing supply concerns:

Industrial metals (copper, aluminium) rose, supported by demand from electrification trends and technology‑driven growth.
Oil prices declined sharply, as renewed optimism around a potential US–Iran agreement eased supply concerns.
Gold edged lower, pressured by rate expectations and reduced inflation fears.
Natural gas and cocoa declined, while coffee saw modest gains due to supply dynamics.

PNG Local Market

PNG’s equity market showed solid activity with concentrated trading, while overall participation improved.

Stock Market:
- Total turnover reached approximately K17.07 million, with about 2.45 million shares traded, indicating stronger activity.
- BSP dominated trading, contributing around K14.27 million, reinforcing its central role in market liquidity.
- Price performance was mixed, with:
  - PLC (+15.65%) and NGP (+6.48%) leading gains
  - KSL (+4.60%) also advancing
  - BSP, CCP, and CPL largely unchanged
- BSP reported strong FY2025 results, including net profit of K1.17 billion (+12.9%) and maintained dividend growth, supporting investor confidence.
Trading remained concentrated in BSP, though broader participation improved across other counters.

Treasury Bills

Treasury bill demand remained strong, supported by high liquidity and more maturing funds than new issuance.
The government issued K210 million, mainly in the 364‑day tenor, continuing the preference for longer maturities.
Interest rates were broadly stable, with slight declines in short‑term bills and a small increase in longer‑term yields.

Overall Takeaway

Global markets were supported by strong equity momentum and easing inflation pressures, particularly in developed markets, while commodities remained mixed. In PNG, market activity strengthened, driven by BSP and selective gains in other stocks, alongside robust treasury bill demand, highlighting strong liquidity and continued investor confidence despite concentrated trading patterns.

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