Investors should buy now, says BSP

BANK South Pacific (BSP) Capital Ltd is recommending that current investors and aspiring ones buy shares now to be able to enjoy a high return in the next two years.This is because during this period, the returns on shares will be up by 51.3% at an estimated selling price of K0.96 per share.The current share price is K0.66.BSP Capital analysts, in releasing the forecasts yesterday, said the number one return would be on Port Moresby Stock Exchange (POMSoX) listed companies.The key points behind the “strong buy” recommendation are: A total dividend of K4 was declared where K2.20 is payable in July this year and a further K1.80 at a later date.“We expected the dividend payout ratio to increase by 50%,” BSP Capital said.The two-year good return on share forecast will be realised because of a successful debt and equity investment in BSP by the International Finance Corp (IFC), which is expected to provide new capital to expand the local book. Another reason was that an anti-fraud technology was introduced to stamp out misrepresentation and deception.BSP said an internal unit was transforming its old systems, processes and procedures to align with “world best practice” and that the electronic banking facilities would continue to expand this year.“There will be 280 installed automatic teller machines (ATM) and the general packet radio service (GPRS) electronic funds transfer at point of sale (eftpos) devices will grow markedly while short message service (SMS) banking will further its growth,” the bank said.