Regulator touts achievements of local stock market

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According to SECC, by the end of 2019, CSX had attracted 22,446 investors, raising nearly $151 million. Heng Chivoan

The Cambodia Securities Exchange (CSX) continues to go from strength to strength, with the average trading value growing nearly five-fold from 2018 to 2019 to surpass $157,000, the latest report from the market regulator shows.

On Wednesday, the Securities and Exchange Commission of Cambodia (SECC) issued a report highlighting some of the achievements of the local bourse in its eight-year history.

 

By the end of last year, CSX had attracted 22,446 investors, raising nearly $151 million for all five companies in the mainboard and the three companies that have issued bonds, the report shows.

CSX chief operating officer Ha Jong-weon said the local bourse deserves praise for what it has accomplished.

“We have extended our trading hours from 3.5 hours to seven hours per day and developed a mobile trading system that allows investors to place orders from their mobile phones.

“We have improved the efficiency of our transactions through the introduction of e-disclosure and have expanded our network of investors at home and abroad, and met with many potential companies,” he said.

However, Ha added: “For us to continue growing, we need the participation of all stakeholders. We need support and participation from the government, the regulator, the private sector, financial institutions, and the public.”

In its report, the SECC said all listed companies are given substantial tax incentives from the government, including a 50 per cent reduction on income tax and the elimination of all tax debt.

 

“We appreciate the tax incentives granted by the government, but we want to see stronger support and more effective policies.

“The ideal scenario is that the regulator continues to support us by building a sound and effective regulatory framework, the private sector continues to learn more and participate in the securities market, financial institutions cooperate and provide securities-related services and the public begins to be more open to this new type of investment,” said Ha.

CSX president and CEO Prom Visoth said the stock market is the ideal option for companies to raise the money they need to expand their operations. For investors, CSX represents an excellent opportunity to diversify investments and generate more revenue.

“The CSX has done a good job so far, but we need to continue educating the public and companies to attract more firms to the bourse,” he said.

CSX’s market capitalisation was $443 million in 2018. Last year, it rose by 58.3 per cent to $701.45 million.