To buy shares on the Port Moresby Stock Exchange (now called PNGX Markets), you must open a trading account with one of the two licensed brokers in Papua New Guinea — Kina Securities or JMP Securities — since individuals cannot buy directly on the exchange. You’ll need valid identification, bank details, and funds deposited before placing buy orders through your broker.
Step-by-Step Guide to Buying Shares on PNGX (POMSox)
1. Open a trading account
Contact one of the two licensed brokers:
JMP Securities Limited
Address: Level 3, ADF Haus, Musgrave Street, Port Moresby
Phone: 7001 9121
Email: enquiries@jmpmarkets.com
Kina Securities Limited (Kina Bank Wealth)
Address: Level 9, Kina Bank Haus, Douglas Street, Port Moresby
Phone: 308 3888
Email: kina@kinabank.com.pg
Fill out a Client Agreement Application Form with your personal details and bank account information.
2. Provide identification
Two forms of valid ID are required (one must have a photo):
Driver’s Licence
Passport
PNG National Identity Card (NID)
Superannuation Card (Nasfund or Nambawan Super)
3. Deposit funds
Transfer money into the broker’s nominated account.
Minimum investment amounts vary by broker — confirm directly with JMP or Kina.
4. Choose listed shares
Review companies listed on PNGX, such as:
BSP Financial Group (BSP)
Kina Securities (KSL)
Steamships Trading Company (SST)
Credit Corporation PNG (CCP)
City Pharmacy Limited Group (CPL)
PNG Air (CGA)
Share prices can be monitored on the PNGX website (www.pngx.com.pg) or in local newspapers.
5. Place buy orders
Complete an Order Instruction Form authorizing your broker to purchase shares.
Brokers charge a fee for executing trades.
Risks and Considerations
No fixed minimum investment — depends on share price and broker requirements.
Dividends are not guaranteed; only companies that declare profits distribute them.
Market risk: Share values fluctuate; you may lose money if prices fall.
Liquidity risk: PNGX is a relatively small market, so selling shares quickly may be difficult.
How you can evaluate which companies listed on PNGX (formerly POMSox) are worth investing in. Since the market is relatively small compared to global exchanges, careful analysis of fundamentals and dividend history is key.
Key Factors to Evaluate PNGX-Listed Companies
1. Dividend history
Look at whether the company consistently pays dividends.
Example: BSP Financial Group (BSP) has a strong record of dividend payouts, making it attractive to income-focused investors.
Companies like Steamships Trading Company (SST) also have a history of rewarding shareholders.
2. Profitability
Review annual reports and audited financial statements.
Focus on net profit margins, revenue growth, and return on equity.
Kina Securities (KSL), for instance, has shown growth in banking and wealth management services.
3. Industry outlook
Consider the sector the company operates in:
Banking & Finance (BSP, Kina) → Stable, dividend-paying.
Retail & Distribution (CPL Group) → Growth potential but more volatile.
Transport & Logistics (PNG Air, Steamships) → Sensitive to fuel costs and economic activity.
4. Liquidity
PNGX is a small market, so some shares trade infrequently.
Highly traded stocks like BSP are easier to buy and sell compared to smaller companies.
5. Corporate governance
Check board composition, transparency, and compliance with PNGX listing rules.
Strong governance reduces risk of mismanagement.
How to Research
Visit the PNGX website (www.pngx.com.pg) for company announcements and price updates.
Read annual reports published by each company.
Follow local business news (Post-Courier, The National) for market developments.
Disclaimer:
This article is only an informational piece and should not be used as investment advice. Contact the two registered brokerage firms for further information and investment options.