CSX optimistic after index closes on unprecedented 416.3 points

The Cambodia Securities Exchange’s (CSX) market index showed an increase of more than 22 per cent at the end of this year compared to the beginning of the year, closing at 416.3 points on Friday. According to a CSX announcement, its market index is up from 340.22 points in the beginning of the year.

Industry insiders are optimistic about the growth of the Kingdom’s new market.

In the first eight months of this year, the CSX Index, which is a figure representing the fluctuation of all listed stocks in the market, was at an average of around 334 points. However, on Friday it rose to 421.42 before closing at 416.30.

CSX Market Operations Department acting director Kim Sophanita said the market index has started to rise steadily since the end of the third quarter this year. She said the market index was previously merely just over 300 points.

“We are very optimistic about the stock market’s momentum, especially in the last few years. We have noted that many Cambodians have opened trading accounts. This is precisely what we want. A growth in the number of listings will boost trading activity,” she said.

The CSX announcement said the high increase in the market index was due to three main reasons, including a number of trading accounts that doubled from about 9,991 to over 20,000 from July to November this year.

It indicated that most listed companies showed results – in profit and high dividend yields, especially the Sihanoukville Autonomous and Phnom Penh Autonomous Ports, which are key factors in boosting the stock price index.

With the cooperation of relevant institutions, the CSX has been working to attract local and international investors through seminars and direct talks. Investors inside and outside the country are part of the drive for growth in the Cambodian securities market, it said.

RHB Indochina Securities Plc CEO Iv Ranarith said the increase in the stock market price index means the share price of the five listed companies overall has increased over 20 per cent compared to the beginning of the year. However, the comparative increase in the companies’ price indexes was not uniform.

“As Cambodia’s economy is projected to grow by more than seven per cent, I expect the share price index to continue to rise as well,” he said.

Currently, there are five stocks listed on the CSX, including Phnom Penh Water Supply Authority, Grand Twins International (Cambodia) Plc, Phnom Penh Autonomous Port, Phnom Penh SEZ Plc and Sihanoukville Autonomous Port, which has 25 per cent in Acleda Bank. Acleda Bank is set to become the sixth listed company on the CSX in the near future.

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