Who is JMP and why invest with them?

JMP Securities Limited is a licensed stockbroker in Papua New Guinea, offering full access to the Port Moresby Stock Exchange (PNGX). The firm is well-established and provides brokerage services to local and international investors alike.

With JMP, you can invest in listed PNG companies such as Bank South Pacific, Kina Securities, Oil Search, and other local blue-chip stocks. They also assist with trading in government securities and corporate bonds when available.

To open an account, simply contact their team via phone or email. You’ll need to fill in a client registration form, provide valid ID, and complete a KYC process. The JMP team will help you through each step so you’re set up to start trading on PNGX.

JMP is a solid choice for investors looking for personalised service, transparency, and direct access to PNG’s growing capital market. Whether you're just starting out or planning to diversify, they offer the guidance you need.

What Are Stockbrokers and How Do They Work in PNG?

Stockbrokers are licensed financial professionals who act as intermediaries between investors and the PNGX Markets Limited (PNGX), the country’s official stock exchange. They are authorised by the Securities Commission of PNG to assist individuals, companies, and institutions in buying and selling shares and other listed financial instruments.

Stockbrokers play a key role in developing PNG’s capital market. They help mobilise local savings, guide investment decisions, and ensure fair and transparent trading. Whether you are a private citizen, small business, or superannuation fund, brokers help you invest and grow your wealth in a regulated environment. Here's how they work:

• Placing Buy and Sell Orders: Brokers assist clients with purchasing or selling shares in companies listed on PNGX. They handle all the trading instructions, paperwork, and order execution on your behalf.

• Licensing and Regulation: All stockbrokers in PNG must be licensed by the Securities Commission and follow laws under the Securities Markets Act. This helps protect investor funds and maintain trust in the system.

• Advice and Investor Education: Some brokers offer advisory services to help clients understand investment risks and build strong portfolios. They also support financial literacy among Papua New Guineans, especially those new to the market.

• Participating in Primary and Secondary Markets: Stockbrokers help clients subscribe to new share offerings and also trade existing shares between investors. Both processes take place under PNGX supervision.

• Clearing and Settlement: All trades are processed through a central clearing system and recorded in the investor’s name. Shares are held securely and can be tracked by the client at any time.

• Who They Serve: Stockbrokers serve individuals, SMEs, retirement funds, churches, local governments, and foreign investors. No matter your background, you can participate in the capital market with proper guidance.

• Fees and Commissions: Brokers charge a fee or commission based on the value of trades or advisory services. These fees vary, so it’s good to ask upfront and compare before starting to invest.

Tradable Instruments on the Papua New Guinea National Stock Exchange

PNGX plays a growing role in supporting PNG’s financial sector by connecting local companies with investors and providing opportunities for wealth creation and economic development.

Regulated by the Securities Commission of Papua New Guinea and operating under the Capital Market Act, PNGX currently offers a more limited but important range of tradable instruments focused primarily on equities. The market is evolving, and reforms are underway to expand the product base in future years. Below are the main instruments currently available on PNGX:

• Equities (Shares): The main investment product on PNGX is ordinary shares in listed companies. These firms operate across sectors such as banking, finance, retail, manufacturing, and energy. By purchasing shares, investors gain partial ownership of the company, receive dividends (if declared), and may benefit from long-term capital gains. Trades are facilitated through licensed stockbrokers and settled by the PNGX registry system.

• Cross-Border Dual Listings: Some companies listed on PNGX are also listed on the Australian Securities Exchange (ASX). These dual-listed entities allow investors in PNG to access firms with regional exposure and governance standards aligned to both markets. However, liquidity may differ between the exchanges.

• Initial Public Offerings (IPOs): PNGX supports the listing of new companies through IPOs, giving local investors an opportunity to participate in early-stage growth. Although IPO activity is limited, future regulatory and infrastructure improvements aim to make capital raising more accessible to PNG businesses.

• Unlisted Equity Offers (via Brokers): While not formally traded on the exchange, some brokers offer private placements or unlisted equity opportunities to high-net-worth or institutional investors. These deals require careful due diligence and typically carry higher risk and longer investment timelines.

• Government and Corporate Bonds (Planned): Although PNGX does not yet host a dedicated bond market, steps are being taken to establish a fixed income segment. This would allow for the listing and trading of government securities, SOE bonds, and corporate debt instruments, thereby expanding investment options and enabling better infrastructure financing.

• Unit Trusts and Managed Funds: While not directly traded on PNGX, some licensed financial institutions in PNG offer access to managed funds and unit trusts. These pooled investment vehicles may include exposure to equities listed on PNGX, regional markets, or diversified portfolios, and are suitable for investors seeking professional fund management.