18 June, 2024
Hello and welcome to this week’s JMP Report,
Last week we saw 3 stocks trade on the local market, BSP traded 713 shares, closing 13t at K16.99, KSL traded 639,318 shares closing 3t higher at K3.01 and STO traded 377 shares, closing 1t higher at K19.38.
WEEKLY MARKET REPORT | 10 June, 2024 – 14 June, 2024
| STOCK | QUANTITY | CLOSING PRICE | BID | OFFER | CHANGE | % CHANGE | 2024 INTERIM | 2024 FINAL DIV | YIELD % | EX-DATE | RECORD DATE | PAYMENT DATE | DRP |
| BSP | 713 | 16.99 | 16.99 | – | 0.13 | 0.77 | K0.370 | K1.060 | 8.87 | TUE 27 FEB 2024 | WED 28 FEB 2024 | FRI 22 MAR 2024 | NO |
| KSL | 639,318 | 3.01 | 3.01 | 3.05 | 0.01 | 1.00 | K0.097 | K0.159 | 8.82 | TUE 4 MAR 2024 | WED 6 MAR 2024 | MON 15 APR 2024 | YES |
| STO | 377 | 19.38 | 19.38 | – | 0.01 | 0.05 | K0.314 | K0.660 | 5.04 | MON 26 FEB 2024 | TUE 27 FEB 2024 | TUE 26 MAR 2024 | – |
| NEM | – | 145.00 | 145.00 | – | – | 0.00 | – | USD 0.250 | 0.63 | MON 4 MAR 2024 | TUE 5 MAR 2024 | WED 27 MAR 2024 | – |
| KAM | – | 1.25 | 1.16 | – | – | 0.00 | K0.12 | – | – | – | – | – | YES |
| NGP | – | 0.70 | – | – | – | 0.00 | K0.03 | – | – | – | – | – | – |
| CCP | – | 2.16 | 2.13 | – | – | 0.00 | K0.110 | K0.131 | 6.21 | FRI 22 MAR 2024 | WED 27 MAR 2024 | FRI 19 APR 2024 | NO |
| CPL | – | 0.79 | – | 0.79 | – | 0.00 | – | – | – | – | – | – | – |
| SST | – | 48.00 | – | 50.00 | 3.00 | 6.00 | K0.35 | K0.60* | 1.33 | WED 24 APR 2024 | FRI 26 APR 2024 | FRI 26 JULY 2024 | NO |
Dual listed PNGX/ASX Stocks
BFL – 6.41 -9c
KSL – 95c –1c
NEM – 61.10 -39c
STO – 7.35 -14c
Interest Rates
In the short end of the market, we saw BPNG offer 245m 364 day TBills, having received 230m in bids, the bank issued 225m at an average of 4.04%. I expect further pressure on the TBills this week as we have the GIS auction today which will take a some of the liquidity out of the market. I will bring you the GIS auction results in next week’s report.
No change in the Term Deposit Market with 12mth rates at 2.35%
Other Assets we like to monitor
Gold – 2,320 -27
Platinum – 973 -7
Palladium – 892 -22
Silver – 29 steady
Bitcoin – 66,466 –4.32%
Ethereum – 3504 –4.34%
What we have been reading
TotalEnergies, Air Products Sign Long-Term Green Hydrogen Supply Agreement
COMPANIES/ ENERGY TRANSITION
Mark Segal June 10, 2024
Energy company TotalEnergies and industrial gases company Air Products announced a new 15-year green hydrogen supply agreement aimed at reducing the operating greenhouse gas emissions footprint of TotalEnergies’ European refineries.
The announcement follows the launch last year by TotalEnergies of tenders for the supply of 500,000 tons per year of green hydrogen. TotalEnergies has six refineries in Europe, including three in France, and refineries in Belgium, Germany and the Netherlands, as well as two biorefineries in France, all of which use hydrogen. The company has stated that it wants to replace 500,000 tons per year of the hydrogen consumed in its refineries with green hydrogen by 2030, which it anticipates could help reduce CO2 emissions by approximately 5 million tonnes annually.
Hydrogen is viewed as one of the key building blocks of the transition to a cleaner energy future, particularly for sectors with difficult to abate emissions, in which renewable energy solutions such as wind or solar are less practical. Around 90 million metric tons of hydrogen are produced annually, although the vast majority is extracted using fossil fuels, which create pollutants and GHG emissions. Air Products has committed $15 billion to energy transition and low carbon hydrogen production projects, including green hydrogen, which uses renewable energy to power the process to extract hydrogen from other materials.
Air Products’ Chairman, President and CEO Seifi Ghasemi said:
“We always believed that if we made clean hydrogen available at commercial scale, the demand would be there. This contract validates our long-term strategy. Clearly the demand is here, and it will grow significantly as we move forward, playing an essential role in decarbonizing heavy industry and other sectors.”
Under the new agreement, Air Products will deliver 70,000 tons of green hydrogen per year to TotalEnergies’ Northern European refineries, starting in 2030. According to TotalEnergies, the hydrogen will enable the avoidance of approximately 700,000 tonnes of CO2 per year.
The companies also signed an agreement for the supply of renewable power, including a 150 MW PPA for TotalEnergies to supply Air Products with 150 MW of energy produced at a solar project in Texas, along with plans to explore PPA opportunities in the UK, Poland and France.
Patrick Pouyanné, Chairman and CEO of TotalEnergies, said:
“Once again, we demonstrate our capacity to pioneer the energy transition and contribute to the emergence of a green hydrogen industry by offering long-term contracts with our six refineries and two biorefineries in Europe. We are also happy to extend our partnership with Air Products by becoming ourselves a supplier of green power to Air Products and contributing to Air Products’ own decarbonization roadmap.”
MSCI Launches New Corporate Bond Index Suite Enabling Investors to Increase Allocations Over Time to ESG and Climate Factors
INVESTORS/ NEW FUNDS & PRODUCTS
Mark Segal June 13, 2024
Investment data and research provider MSCI announced the launch of the Glidepath Corporate Bond Indexes, a new suite of nine indices aimed at facilitating the transition of portfolios over time to align with ESG and climate-related investment objectives.
According to MSCI, the new indices utilize a combination of target factors, such as ESG scores, greenhouse gas (GHG) emissions, or a combination of the factors, to gradually transition each index from a replica of the parent index towards an index with specific characteristics.
Through the new process utilized by the indices, the cash generated by the fixed income investments in each index will be allocated to issuers that are more aligned with the index’ target factors, rather than the typical reallocation into the entire pro-rata index.
According to a report released alongside the launch of the new indices, MSCI noted the challenged facing fixed income investors in balancing their fiduciary duties with their sustainability commitments, with the company highlighting their glidepath-index methodology as a solution to help investors transition bond portfolios towards sustainability goals by reinvesting cash flows into issuers aligned with specific ESG and climate-related objectives.
In a social media post announcing the new indices, MSCI said:
“The MSCI Glidepath Corporate Bond Indexes could offer a new perspective on the way institutional investors could approach the transition of their fixed income portfolios. Glidepath, with its distinctive features and transparent methodology, can become a valuable tool for fixed income investors.”
SEDC Energy, Gentari Hydrogen formalise JV to develop Sarawak H2 Hub
BY GALILEO PETINGI ON JUNE 10, 2024
Sushil (left) and Hardin exchange documents witnessed by Abang Johari (back fourth left).
KUCHING (June 10): SEDC Energy Sdn Bhd and Gentari Hydrogen have formalised a joint venture to develop Sarawak H2 Hub – a global-scale hydrogen production hub in Bintulu.
This was done in a document exchange ceremony during the Asia Pacific Green Hydrogen (APGH) 2024 Conference and Exhibition held at Borneo Convention Centre Kuching (BCCK) today.
SEDC Energy chief executive officer Robert Hardin and Gentari CEO Sushil Purohit exchanged documents before Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.
It is understood that the joint-venture will be set up by SEDC Energy, the majority shareholder, and Gentari Hydrogen Sdn Bhd, a subsidiary of Gentari, following a Heads of Agreement (HoA) signing between the parties earlier this year.
The new company will serve as the sole vehicle to undertake the development, construction, ownership, operation and maintenance, as well as control of the Sarawak H2 Hub, including investing in hydrogen production trains within the hub.
“The Sarawak H2 Hub will be a facility for standardising and optimising all hydrogen production projects in the Bintulu area, besides operating as the sole supplier of green hydrogen for downstream facilities in the region.
“The hub adopts a unique ‘plug and play’ concept, utilising a modular approach to integrate hydrogen production units into the hub where common utilities and ancillary services are predeveloped.
“Project H2ornbill, in collaboration with Japanese firms Eneos and Sumitomo Corp, and Project H2biscus, a partnership with South Korean firms Samsung Engineering, Lotte Chemical, and KNOC to establish hydrogen derivative facilities, are set to be part of the Sarawak H2 Hub,” said a joint press release by SEDC Energy and Gentari.
The event was one of nine exchanges of documents that took place during APGH 2024.
SEDC Energy also exchanged documents with ICE Petroleum, ACWA Power, and Volterra/Curveh2, while Brooke Holdings Sdn Bhd announced a strategic partnership with SLB (formerly known as Schlumberger) on technical and technological aspects of developing a comprehensive Carbon Capture and Storage (CCS) hub in Sarawak.
Other exchanges made during the ceremony were between Universiti Malaysia Sarawak (Unimas) and H2Energy Sdn Bhd; between Salcra, KIS, and Planet QEOS; as well as between OCBC Bank Malaysia and InvestSarawak.
I hope you have enjoyed this week’s read, please feel free to reach out if you would like to discuss your investment journey. Have a great week.
Regards,
Head, Fixed Interest and Superannuation
JMP Securities
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p. PO Box 2064, Port Moresby NCD Papua New Guinea
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