PPWSA slide continues, as price sees correction

PPWSA slide continues, as price sees correction

Sellers have dominated the Cambodia Securities Exchange for the last seven days of trading, and the downward trend for the single stock, Phnom Penh Water Supply Authority, was expected to continue into next week, experts said.

PPWSA closed down 4.6 per cent Thusday at 7,250 riel (US$1.79), according to the CSX.

There were 26,171 shares worth $46,942 traded, a volume increase of 53 per cent over Wednesday’s trades.

An SBI Royal Securities market report yesterday called the market increasingly “gloomy”, and said the price could fall into next week.

The Securities and Exchange Commission of Cambodia limits daily price increases and decreases to 5 per cent.

Still 15 per cent above its initial public offering price of $1.57, buyers could return as PPWSA approaches that price, SBI said. “We believe that buying interest might come to the market as the share price falls below its IPO price, which could happen within the next one or two weeks,” the report said

The more than 400,000 unsold shares yesterday indicated continued selling pressure, the report noted.

“Sometime next week, if the price continues to fall, the stock price will be around the IPO price,” Han Kyung-tae, Tong Yang Securities Cambodia country head, said yesterday.

“I believe some investors will start buying at the IPO price for their long-term investment. There are still many long-term investors waiting for the price to settle.”

For the past week, investors had been selling with the expectation of buying at a lower price, he said.

ACLEDA Securities bought 11,823 shares yesterday, the day’s biggest buyer, the SBI report showed. Top seller Phnom Penh Securities sold 43 per cent of the market volume. PPS has been the biggest seller for several days.

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