CSX feels Covid-19 pinch
CSX feels Covid-19 pinch
The Cambodian Securities Exchange (CSX) is experiencing a sharp decline in stock prices amid the global spread of Covid-19.CNN recently reported that markets tumbled on Sunday in the US, with Dow futures falling more than 1,000 points and the S&P 500 plunging as much as five per cent, triggering a limit that prevents futures trading below that mark.
The sell-off continued across Asia-Pacific, where both Australian and Japanese markets fell on Monday.
Wall Street has reported massive losses in the past weeks as a result of Covid-19 fears.
CSX vice-chairman Ha Jong-weon told The Post on Thursday that the local bourse has also felt the impact of the virus. He said since mid-February, the index has dropped by nearly 20 per cent.
“We have seen more orders from the sell side, but, most importantly, they are asking for lower prices,” Ha said.
He opined that the effect of the virus on the market will be short-lived and pointed out that now is the time to buy stocks at a lower price.
“This outbreak is shaking the world’s stock markets. The drop is significant in other markets in the region. In Thailand, for instance, the SET index dropped by nearly 12 per cent during the last few weeks. Japan, Malaysia, Korea, Singapore showed similar drops,” he said.
Of the five listed companies, the Phnom Penh Autonomous Port (PPAP) suffered the greatest loss in stock value. Since mid-February, the price of stocks of the Sihanoukville Autonomous Port (PAS) dropped by about 30 per cent, from 18,460 riel ($4.56) per share on February 17 to 12,780 per share on Thursday.
“If the downward trend continues [because of Covid-19 or something else] to the point where investors’ confidence and the trade environment is compromised, we will take preventative action.
“For now, my opinion is that this drop is just part of normal fluctuations as a result of factors at the macroeconomic level,” said Ha.
As the market closed on Thursday, CSX Index surged by 4.99 per cent, jumping to 616.51 points. This reflected a significant rebound in the price of stocks. PAS soared to 13,800 riel after consecutive drops in the past week.
The other four stocks – Phnom Penh Water Supply Authority (PWSA), Grand Twins International (GTI), PPAP, and Phnom Penh Special Economic Zone (PPSP) – reached 6,000 riel, 4,020 riel, 10,700 riel, and 2,550 riel, respectively. Trading value rose to 61.59 million riel.
