Weekly Market Insights - 27 January 2026

Jan 27
2 min read

Markets moved through the week in a measured and cautious tone, with steady activity across Papua New Guinea and mixed signals from global markets. While volatility remained contained locally, international sentiment softened as investors reassessed growth, policy direction, and risk exposure.

Key Market Highlights

PNG equities delivered a calm and balanced session, with trading activity spread across major counters and prices holding firm. The lack of sharp moves reflected stable investor sentiment and an orderly market environment.

Globally, risk appetite weakened. Major equity markets in the US, Europe, and Asia posted declines as investors stepped back from recent gains. Australia was a notable exception, edging higher on support from mining and commodity-linked stocks.

The US Dollar Index strengthened modestly, supported by firm economic data and reduced expectations for near-term US rate cuts. Currency movements elsewhere were mixed, with the Australian and New Zealand dollars showing resilience, while the Japanese yen firmed on safe-haven demand.

Commodities delivered a mixed performance. Energy markets diverged, with natural gas and coal posting gains while crude oil softened. Metals were generally weaker, although gold edged higher as investors maintained a degree of defensive positioning.

Government bond yields were uneven across major markets. US, UK, and Australian yields moved higher, while Japanese yields declined, reflecting differing policy expectations and domestic economic signals.

International Market Developments

Global equities retreated during the week as investors responded to cautious earnings signals, tightening market breadth in the US, and mixed manufacturing data across Europe. Meanwhile, China’s record trade surplus and improved export performance continued to shape regional expectations for 2026 growth.

Economic data releases showed resilience in parts of the global economy. The World Bank revised its 2026 global growth forecast slightly higher, led by stronger-than-expected US performance, while Germany returned to modest growth after contracting in 2024.

PNG Market Update

The PNG stock market remained steady, with 23 trades executed during the week and no price movements recorded across counters. Turnover was concentrated in BSP, which accounted for approximately three-quarters of total value traded, while KSL led volumes.

Treasury Bill auction results reflected continued government funding needs, with net issuance increasing and demand remaining strongest for longer tenors. Yields were unchanged for shorter maturities, while the 364-day bill saw a modest rise, steepening the yield curve and improving returns for longer-dated investors.

Looking Ahead

Markets remain focused on incoming economic data, policy signals from central banks, and evolving global growth expectations. While short-term volatility remains contained, investors continue to favour liquidity, quality, and clarity as they navigate an uneven global backdrop.

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