Weekly Market Insights (19-26 June 2026)

Jun 29
2 min read

Global Markets

Global markets delivered a mixed but generally positive performance, with gains in the US, Australia, and Japan offset by weakness in China and parts of Europe amid continuing interest-rate uncertainty.

Equities:
- US markets advanced, driven by strong technology sector performance and resilient investor sentiment despite a cautious Federal Reserve outlook.
- Australian equities posted modest gains, supported by stable interest-rate expectations and positive global sentiment.
- European markets were mixed, with Germany’s DAX rising on technology gains while the FTSE weakened due to pressure on mining stocks.
- Asian markets diverged sharply, with Japan surging on technology strength while Hong Kong declined on interest-rate concerns and weaker investor confidence.
Bonds:
- US and Australian bond yields eased, reflecting softer inflation expectations and expectations of a pause in policy tightening.
- UK and Chinese yields rose, signalling ongoing inflation concerns and expectations of tighter monetary conditions.
Currencies:
- The US dollar strengthened notably, supported by expectations of further Federal Reserve tightening and safe-haven demand.
- The Australian dollar, euro, and Chinese yuan weakened against the stronger US dollar.

Commodities

Commodity markets softened overall, although agricultural commodities remained strong.

Oil, gold, and industrial metals declined, reflecting improved supply conditions, easing geopolitical risks, and tighter financial conditions.
Crude oil fell sharply, driven by expectations of increased supply and reduced geopolitical disruption risks.
Natural gas gained, supported by tighter storage conditions and stronger demand expectations.
Coffee and cocoa prices rose strongly, driven by weather-related supply concerns and tightening global availability.

PNG Local Market

PNG’s equity market remained quiet and stable, with subdued trading activity and limited price movement.

Stock Market:
- Total turnover was approximately K5.6 million, with around 1.12 million shares traded during the week.
- BSP continued to dominate market value, contributing roughly K3.0 million (54% of total turnover).
- Share price performance was subdued:
  - BSP fell 0.18%
  - KSL declined 2.04%
  - PLC and STO were unchanged
- Trading volumes were more broadly distributed, with PLC recording the highest volume, although market value remained concentrated in BSP.
Market Updates:
- Trading was suspended on 17 June 2026 due to the public holiday marking King Charles III’s Birthday.
- BSP confirmed an unauthorised access incident involving its non-production test environment, while confirming no impact on customer funds, accounts, or banking services.

Treasury Bills

Treasury bill market conditions remained balanced and stable, with issuance closely matching maturities.

Total issuance amounted to K290 million, primarily concentrated in the 364-day tenor (K220 million).
Yields showed only modest movements:
- 182-day yield: 4.73% (-0.12%)
- 273-day yield: 4.99% (+0.06%)
- 364-day yield: 4.97% (-0.09%)
Maturing securities totalled K289.44 million, creating a near-neutral liquidity position and supporting steady investor demand.

Overall Takeaway

Global markets remained resilient despite tightening financial conditions, supported by technology-led equity gains and easing inflation expectations. Commodity markets weakened overall, although coffee and cocoa remained strong due to supply concerns. In PNG, equity activity was subdued and largely dependent on BSP, while the Treasury bill market remained stable, liquid, and well-supported, reflecting continued investor confidence.

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