The Cambodia Securities Exchange (CSX) is witnessing a surge in new companies listing both equity and bond securities, despite the tense global economic situation.

This is evidenced by the increase in daily trading volume and the number of new exchange accounts being opened, as stated by the local bourse.

Hong Sok Hour, CEO of the CSX, noted recently that there are 21 firms listed on the exchange, including 11 stocks and 10 corporate bonds, collectively raising $349 million.

In October 2023, the average daily trading volume for shares reached approximately 130,000 per day, with an average daily trading value of about $210,000 and approximately 11,000 active investors participating.

The total number of trading accounts with the CSX stood at approximately 44,000 as of October. Following the My First Stock 2023 exposition, there was an additional influx of about 3,000 online account openings and securities company counter transactions, bringing the total number of accounts to around 47,000.

“We also anticipate a significant number of firms listing equity and corporate bonds, along with a series of sector-specific bonds [next year],” Sok Hour stated.

“In 2024, we will maintain close collaboration with all stakeholders to introduce new financial instruments, which we refer to as joint ventures and new initiatives aimed at supporting and promoting the listing of potential companies, while enhancing the investment knowledge of the public,” he added.

Hean Sahip, secretary of state at the Ministry of Economy and Finance, previously highlighted that between 2011 and 2022, the government had issued four sub-decrees, resulting in tax incentives for the securities sector. 

“Listed companies receive an income tax deduction of up to 50 per cent for the first three years and other tax liability exemptions. We will continue to provide support and foster the steady growth of the market,” he stated.

Sahip expressed support for the CSX expo, which has played a vital role in raising awareness and offering opportunities for the public to gain insights into investment opportunities within the exchange.

Sou Socheat, director-general of the Securities and Exchange Regulator of Cambodia (SERC), noted that the stock market has been making progress, especially with the increasing number of securities listed by local firms.

He believes this reflects the stock market’s growing significance as an alternative source of capital. 

“The rise in the number of issuers demonstrates our recognition of potential companies understanding the benefits and potential of raising capital through the stock market to further expand their businesses,” he said.