PNGX Equities • Fixed Income • Investor Education
BSP block lifts turnover to K40.6m
Seven counters trade; BSP dominates
JMP Weekly Report | Week ending 16 October 2026
| TRADING VALUE K40.62m ×8.5 on prior week |
TOTAL VOLUME 2,338,213 +55% on prior week |
STOCKS TRADED 7 of 11 BSP, KSL, STO, KAM, NGP, CCP, PLC |
MARKET YIELD (LTM) 5.28% flat wow |
Weekly Trade Commentary
A heavy week, dominated by a single BSP block — turnover surged to K40.6m on 2.34m shares as seven counters traded. BSP alone was K38.87m of that, trading 1,390,587 shares steady at K27.95. KAM was the next most active with 516,844 shares worth K1.09m, steady at K2.25, while PLC traded 384,360 shares, easing 1t to K1.47. KSL fell a further 6t to K3.97, and NGP dropped 16t to K1.20 on 21,816 shares. STO and CCP traded small parcels. CPL, NEM, SST and ADY did not trade.
| Stock | Volume | Close (K) | Value (K) | Change | Change % |
|---|---|---|---|---|---|
| BSP | 1,390,587 | 27.95 | 38,866,906.65 | — | — |
| KSL | 23,874 | 3.97 | 95,122.78 | −0.06 | −1.49% |
| STO | 165 | 22.90 | 3,778.50 | — | — |
| NEM | — | 490.00 | — | — | — |
| KAM | 516,844 | 2.25 | 1,091,899.00 | — | — |
| NGP | 21,816 | 1.20 | 26,179.20 | −0.16 | −11.76% |
| CCP | 567 | 4.66 | 2,642.22 | — | — |
| CPL | — | 1.10 | — | — | — |
| PLC | 384,360 | 1.47 | 538,233.85 | −0.01 | −0.68% |
| SST | — | 50.00 | — | — | — |
| ADY | — | — | — | — | — |
| TOTAL | 2,338,213 | 40,624,762.20 | −0.03% |
Source: PNGX matched on-market trades, week ending 16 October 2026. JMP Securities analysis.
Dividend Yield
Market-wide LTM dividend yield held at 4.55% this week (weighted by market cap, legacy methodology). KSL firms again to 8.44% on its slip to K3.97, while NGP eases to 15.83% after a 16t fall to K1.20; the rest of the board is unchanged. NGP (15.83%) still leads, then KAM (8.89%), KSL (8.44%) and BSP (6.87%). PLC remains pre-dividend; ADY has no dividend history yet.
| Stock | Issued Shares | Mkt Cap (K) | Fin 24 | Int 25 | Fin 25 | Int 26 | Yield % |
|---|---|---|---|---|---|---|---|
| BSP | 467,317,665 | 13,061,528,737 | 1.210 | 0.500 | 1.380 | 0.540 | 6.87% |
| KSL | 294,332,296 | 1,168,499,215 | 0.155 | 0.126 | 0.193 | 0.142 | 8.44% |
| STO | 3,261,616,703 | 74,691,022,499 | 0.414 | 0.559 | 0.443 | 0.514 | 4.18% |
| NEM* | 1,097,000,000 | 537,530,000,000 | — | 2.110 | 2.110 | USD $0.520 | 0.86% |
| KAM | 53,259,588 | 119,834,073 | — | 0.250 | — | 0.200 | 8.89% |
| NGP | 45,890,700 | 55,068,840 | 0.120 | 0.040 | 0.190 | — | 15.83% |
| CCP | 307,931,332 | 1,434,960,007 | 0.121 | 0.121 | 0.130 | 0.125 | 5.47% |
| CPL | 206,277,911 | 226,905,702 | — | 0.050* | 0.040 | 0.020 | 5.45% |
| PLC | 860,718,662 | 1,265,256,433 | — | — | — | — | — |
| SST | 31,008,237 | 1,550,411,850 | 0.300 | 0.400 | 0.650 | 0.350 | 2.00% |
| ADY | 316,766,640 | — | — | — | — | — | — |
| TOTAL / WEIGHTED-AVG | 5.28% | ||||||
LTM = Last twelve months. Yields use most recently declared interim and final dividends. NEM dividends in USD until PGK rate announced; NEM excluded from market-wide yield. PLC now added.
Dividend Yield = Annual Dividends per Share ÷ Current Share Price × 100
Key Market Announcements
A very light announcements week — a single filing. STO lodged a notice regarding unquoted securities.
| Stock | Announcement | Source |
|---|---|---|
| STO | Notice regarding unquoted securities | View announcement >> |
Source: PNGX market announcements, 12–16 October 2026.
BPNG Treasury Bill Auction
Auction: 14-OCT-26 / GOI / Government Treasury Bill | Settlement: 16-OCT-26 | Amount on offer: K240.0m
| Terms | Issue / 63 | Issue / 91 | Issue / 182 | Issue / 273 | Issue / 364 | Total |
|---|---|---|---|---|---|---|
| Weighted Avg Yield | — | — | 4.65% | 5.04% | 5.07% | |
| Amount on Offer (K’m) | — | — | 30.00 | 60.00 | 150.00 | 240.00 |
| Bids Received (K’m) | — | — | 17.40 | 33.00 | 248.72 | 299.12 |
| Successful Bids (K’m) | — | — | 17.40 | 33.00 | 198.72 | 249.12 |
| Over / (Under) Subscribed (K’m) | — | — | −12.60 | −27.00 | +98.72 | +59.12 |
Source: Bank of Papua New Guinea — Domestic Markets Department, T-Bill auction 14 October 2026 (settlement 16 October 2026).
BPNG Government Bond Auction
NO NEW ISSUANCE — WEEK ENDING 16 OCTOBER 2026
Auction: 22-SEP-26 / GOB / Government Bond | Settlement: 25-SEP-26 | Amount on offer: K300.0m
| Series | Offer | Bids | Successful | Yield | Weighted Avg | Coupon | Net Subscription |
|---|---|---|---|---|---|---|---|
| 2026/5057 — 3 yr | 50.00 | 60.00 | 55.00 | 6.17–6.20% | 6.18% | 6.20% | +10.00 |
| 2026/5058 — 5 yr | 50.00 | 66.10 | 66.10 | 6.50–6.60% | 6.57% | 6.57% | +16.10 |
| 2026/5059 — 7 yr | 50.00 | 112.20 | 112.20 | 6.60–6.70% | 6.68% | 6.70% | +62.20 |
| 2026/5060 — 10 yr | 100.00 | 126.54 | 110.54 | 6.70–6.80% | 6.77% | 6.80% | +26.54 |
| 2026/5061 — 15 yr | 50.00 | 56.00 | 50.00 | 7.17–7.20% | 7.18% | 7.20% | +6.00 |
| TOTAL | 300.00 | 420.00 | 393.00 | +120.84 |
Source: Bank of Papua New Guinea — Domestic Markets Department, GOB auction 22 September 2026 (settlement 25 September 2026).
Investor Education: Convertible Bonds
What is a convertible bond?
A convertible bond is a corporate bond the holder can exchange for a set number of the issuer’s ordinary shares. Until conversion it behaves like any other bond — paying coupons and repaying face value at maturity — but if the share price rises far enough, the holder converts and captures the equity upside. In effect it bundles a straight bond with a call option on the issuer’s shares: the downside protection of debt with a share in the upside.
The economics turn on a few terms. The conversion ratio is how many shares each bond converts into; the conversion price (face value ÷ ratio) is the effective price paid per share; and the conversion premium is how far that sits above the share price at issue. Take a K1,000 bond converting into 40 shares — a K25 conversion price against a K20 share (a 25% premium). If the shares fall to K15 the conversion value is K600, so the holder keeps the bond and collects coupons; if they rise to K35 the conversion value is K1,400, so converting delivers a K400 gain over face value.
A convertible’s price tracks three regimes: distressed, balanced and equity-like. Compared with the alternatives it pays a lower coupon than a straight bond and offers only moderate downside protection, but unlike ordinary shares it ranks ahead of equity in a wind-up — a middle path between debt and equity.
| 01 | Conversion ratio The number of shares received for each bond on conversion. |
| 02 | Conversion price Face value ÷ conversion ratio — the effective price paid per share. |
| 03 | Conversion premium How far the conversion price sits above the share price when the bond is issued. |
| 04 | Coupon & call/put A lower coupon than a straight bond; the issuer may redeem early, while the holder may sell back on set dates. |
What We’ve Been Reading
FEATURED READ
Markets face rising risks: AI, bond yields and cyber
IMF Blog • Vamvakidis & Wu
The IMF’s latest Global Financial Stability Report flags three rising risks, each with the potential for broader fallout: an AI-driven market correction, a sharper rise in sovereign bond yields, and cyberattacks. Markets have stayed resilient on solid growth, strong earnings and accommodative conditions — but there is no room for complacency.
AI has become a major support for the economy and markets, yet leverage is building. The IMF reviewed 14 circular AI financing deals since 2023 — roughly US$300bn of equity and US$650bn of debt against US$1.4tn of future revenue commitments — where stress at one firm could cascade.
The second risk is the bond market. Sovereign yields have climbed on renewed inflation, fiscal worries and firmer growth. Higher yields lift discount rates, depress valuations and reduce the collateral value of bonds. The third risk is cyber: in over 70% of reported cases this year, software providers had almost no time to patch before attackers struck — more than double the 2021 share.
JMP read: PNG is insulated from the AI-leverage and cyber channels directly, but not from their transmission. An AI-driven correction or a fresh bond-yield shock in the major economies would lift global discount rates, pressure commodity prices and tighten financing conditions for frontier issuers. The takeaway for PNG is the familiar one: rebuild fiscal and external buffers while conditions still allow it.
Also on our desk
- The IMF flags three rising market risks: an AI correction, a bond-yield shock, and cyberattacks.
- 14 circular AI deals since 2023: ~US$300bn equity, ~US$650bn debt vs ~US$1.4tn revenue commitments.
- In over 70% of cyber cases this year, providers had almost no time to patch — double the 2021 share.
What this report covered this week
- Weekly trade activity — 7 stocks traded, K40.6m value (×8.5 pw); BSP block dominates
- Dividend yields — market-wide LTM 5.28% (flat; KSL 8.44%, NGP eases to 15.83%)
- A single filing — STO notice on unquoted securities
- BPNG T-Bill auction — over-subscribed by K59.12m
- BPNG bond auction — most recent (no new issuance this week)
- Investor Education — Convertible Bonds
- External research — IMF GFSR: AI, bond-yield and cyber risks
For Further Enquiries
Speak to your equities trader for any orders, research questions or market colour.
Benny Takin
Equities Trader — Primary contact, JMP Weekly Report
benny.takin@jmpmarkets.com
+675 7001 9121 / 320 0240
JMP Securities Limited
Level 3, ADF Haus, Musgrave Street
PO Box 2064, Port Moresby NCD, Papua New Guinea
Disclaimer
This report has been prepared by JMP Securities Limited (Capital Market Licence holder, Securities Commission of PNG). It is general information only and does not take into account the objectives, financial situation or needs of any particular person. It is not an offer or solicitation to buy or sell any security. Information is sourced from PNGX, Bank of Papua New Guinea and external publications cited herein, with JMP analysis. While reasonable care has been taken, no warranty is given as to accuracy or completeness; to the maximum extent permitted by law JMP accepts no liability for loss arising from reliance on this material. Investors should obtain independent professional advice before making any investment decision.