Weekly Market Insights (24 - 31 July 2026)

Aug 3
3 min read

Updated: Aug 17

Global Markets

Global markets finished the week higher overall, supported by softer US economic data, improving investor sentiment, and gains across most major equity markets, despite ongoing uncertainty around inflation and interest rates.

Equities:
- US markets advanced, with gains in the S&P 500, Dow Jones, and Nasdaq as weaker labour market data reduced expectations for further Federal Reserve tightening and supported technology stocks.
- European equities strengthened, led by Germany’s DAX, as strong earnings and gains in banking, retail, semiconductor, and technology stocks boosted sentiment.
- Asian markets were mixed, with Hong Kong posting strong gains on technology-sector strength, while Japan declined due to weakness in semiconductor and AI-related stocks.
- Australian equities were among the strongest performers, supported by gains in mining, financial, and consumer sectors and improving confidence in the domestic economic outlook.
Bonds:
- US Treasury yields rose, reflecting differing inflation and policy expectations compared with other major economies.
- UK, Australian, and Chinese yields declined, supported by easing inflation concerns and expectations of continued policy support.
Currencies:
- The US dollar weakened significantly, as softer economic data reduced expectations of additional rate hikes.
- The euro, Australian dollar, and Chinese yuan all strengthened, benefiting from broad US dollar weakness and improved investor sentiment.

Commodities

Commodity markets delivered mixed results, with strength in metals and agricultural commodities offset by weakness in energy products.

Copper and aluminium gained, supported by improving demand expectations and ongoing supply constraints.
Coffee and cocoa continued to rise, driven by supply concerns, adverse weather conditions, and tightening inventories in key producing regions.
Coal posted gains, supported by strong electricity demand in China and supply constraints.
Crude oil and natural gas declined, reflecting renewed prospects for US–Iran negotiations, expectations of increased OPEC+ supply, and ample inventories.
Gold edged slightly lower despite ongoing safe-haven demand.

PNG Local Market

PNG markets remained stable and orderly, with trading concentrated in BSP and PLC.

Stock Market:
- PNGX recorded total turnover of approximately K6.57 million from 1.15 million shares traded.
- BSP contributed the largest share of market value, while PLC recorded the highest trading volume.
- Price movements were mixed:
  - CPL was the strongest performer, rising 10.53% to K1.05.
  - STO gained 0.58%.
  - KSL declined 0.59%.
  - BSP, CCP, and PLC closed unchanged.
- Despite healthy trading activity, most listed securities showed limited price movement.
Corporate Update:
- BSP Financial Group announced it will release its 2026 Half-Year Financial Results on 21 August 2026, followed by an investor briefing hosted by senior management.

Treasury Bills

The Treasury Bill market remained stable, despite continued liquidity being absorbed from the financial system.

The Government offered K270 million in Treasury Bills compared with K180.78 million in maturities, resulting in a net liquidity absorption of K89.22 million.
Yield movements were minimal:
- 182-day: 4.85% (-0.01%)
- 273-day: 5.04% (unchanged)
- 364-day: 5.03% (unchanged)
The 364-day tenor accounted for approximately 74% of issuance, reflecting the Government’s continued preference for longer-term funding.
Stable yields and strong participation indicate ongoing investor confidence in government securities.

Overall Takeaway

Global markets benefited from softer US economic data, a weaker US dollar, and improving investor sentiment, supporting gains across most equity markets. Commodity markets remained mixed, with metals and agricultural products outperforming energy. In PNG, market activity remained steady with BSP and PLC dominating turnover, while Treasury Bill auctions continued to attract strong demand despite the withdrawal of liquidity from the market.

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