The Cambodia Securities Exchange (CSX) has seen more trading momentum this year than since its inception in 2012, as more companies show interest in listing.
The exchange’s index has shown strong growth in the third quarter of this year, with market capitalisation up more than 40 per cent from the second quarter, which is the highest since it opened in 2012, CSX data shows.
In the third quarter of this year, market capitalisation reached $800 million – up from $570 million in the second quarter, the data shows. The CSX index rose to 869.16 points at the end of last month, the highest figure in the last six years.
The data shows that 725 new trading accounts were opened in the third quarter, bringing the total to 22,196. The average trading volume per day in the third quarter stood at $27,121, or 12,539 shares. Trading by individual investors was at about 94 per cent.
CSX Market Operations Department acting director Kim Sophanita told The Post on Wednesday that the market’s performance in the third quarter improved significantly.
The CSX’s good performance was a result of important factors such as Cambodia’s economic growth and growth in the listed companies’ profits, said Sophanita.
“Better dividend policies, increased investor confidence in the market, and CSX’s and stakeholders’ efforts to facilitate regulations have buoyed its growth,” she said.
Sophanita said these factors resulted in the current number of trading accounts reaching 22,196 – up 35 per cent from the end of the third quarter of last year.
Many companies are currently looking to list on the exchange to benefit from the 50 per cent tax deduction on net profit, she said.
“I’m optimistic about the market as well as the sector as a whole. I imagine that if the new companies that are preparing to list do so as planned and their stocks continue to offer an attractive profit margin, investors will become more involved,” she said.
CSX data shows that the share prices of the five companies listed on the exchange generally showed strong increases at the end of the third quarter of this year from the same period last year.
The data shows that the Sihanoukville Autonomous Port’s (PAS) share price soared by 270 per cent from 6,400 riel to 23,650 riel ($1.56 to $5.77), Phnom Penh Autonomous Port’s (PPAP) shares climbed nearly 100 per cent from 6,400 riel to 12,780 riel.
Phnom Penh Water Supply Authority’s (PWSA) shares gained 90 per cent from 3,240 riel to 6,160 riel, Grand Twins International (Cambodia) Plc’s (GTI) shares increased 46 per cent from 3,020 riel to 4,400 riel.
However, Phnom Penh Special Economic Zone’s (PPSP) shares fell two per cent from 2,800 riel to 2,740 riel.
Iv Ranarith, the CEO of RHB Indochina Securities Plc, a securities underwriter, told The Post on Wednesday that PAS and PPAP stocks were the key drivers of the stock market’s strong growth in the third quarter.
“Our market is small, so gaining a lot of interest from investors can also drive the market’s growth. Having fewer sellers than people wanting to buy will make it easier to grow the market,” he said.