Weekly Market Insights (22-29 May 2026)

Jun 1
2 min read

Global Markets

Global markets were broadly positive, supported by strong corporate earnings, technology sector momentum, and easing geopolitical tensions, although performance was mixed across Asia.

Equities:
- US, European, and Japanese markets advanced, driven by strong earnings, AI-related technology stocks, and improving sentiment surrounding Middle East diplomacy.
- Australian equities posted modest gains, supported by expectations of an interest rate pause and stronger global market sentiment.
- Hong Kong declined, reflecting profit-taking and investor caution ahead of inflation data releases.
Bonds:
- US, UK, and Australian bond yields declined, reflecting easing inflation concerns and softer expectations for future rate hikes.
- China's bond yields remained low and stable, supported by accommodative monetary policy and expectations of further economic support.
Currencies:
- The US dollar remained relatively stable, supported by interest rate expectations.
- The Australian dollar and Chinese yuan weakened slightly, while the euro remained largely unchanged amid mixed economic signals.

Commodities

Commodity markets delivered mixed performances, reflecting changing supply dynamics and geopolitical developments.

Copper and aluminium gained, supported by strong industrial demand and ongoing electrification and AI-related infrastructure investment.
Oil and natural gas declined, as renewed optimism around a potential US–Iran agreement eased supply concerns.
Gold edged lower, pressured by inflation concerns and expectations of tighter monetary policy.
Cocoa prices fell, reflecting improved supply prospects and weaker demand, while coffee posted modest gains.

PNG Local Market

PNG’s equity market recorded strong activity, though turnover remained heavily concentrated in a small number of stocks, particularly BSP.

Stock Market:
- Total market turnover reached approximately K17.07 million, with around 2.45 million shares traded during the week.
- BSP dominated trading, contributing approximately K14.27 million in value and remaining the primary driver of market activity.
- Strong share price gains were recorded in several counters:
  - PLC: +15.65%
  - NGP: +6.48%
  - KSL: +4.60%
  - BSP: +0.18%
- CCP and CPL closed unchanged, while activity outside BSP remained relatively limited.
Corporate Update:
- BSP Financial Group AGM highlighted a strong FY2025 performance, including:
  - Net profit of K1.17 billion (+12.9%)
  - Total dividends of K1.88 per share
  - Continued focus on digital investment, financial inclusion, and regional expansion.

Treasury Bills

The Treasury bill market remained highly liquid and well supported, with strong reinvestment demand.

Government issuance totalled K210 million, concentrated primarily in the 364-day tenor (K150 million).
Shorter-term yields eased slightly, while the 364-day yield increased marginally:
- 182-day: 5.16% (-0.10%)
- 273-day: 5.31% (-0.09%)
- 364-day: 4.92% (+0.04%)
Maturing bills (K320.95 million) exceeded new issuance, supporting strong liquidity and continued demand for government securities.

Overall Takeaway

Global markets benefited from strong earnings, improving geopolitical sentiment, and easing inflation concerns, supporting equity gains and lower bond yields. In PNG, equity market activity remained robust and heavily driven by BSP, while the Treasury bill market continued to reflect strong liquidity, healthy investor demand, and confidence in government securities.

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