Cambodia’s bourse sees record low volume
In the frenzied run-up to the national election Sunday, Phnom Penh has been the site of concerts, rallies and streets packed with campaigners. But the energy hasn’t spread to the halls of the Cambodia Securities Exchange. At the close of trading Tuesday, five business days had elapsed without a single share bought or sold, the longest drought since the exchange, or CSX, first offered Phnom Penh Water Supply Authority stock in April 2012. The run lasted from July 17 until the 23 — not counting the weekend in between when the bourse shuts. Volume picked back up at the close yesterday, when 100 shares moved at a price of 6,300 riel ($1.58), unchanged from Tuesday. Explanations for the slump differ, as explanations for why the exchange is performing poorly usually do. CSX officials say that the dearth of activity is a natural by-product of the election campaign that started on June 27, when business takes a back seat to politics. But analysts disagree, arguing that prices were too high for what buyers were willing to pay. … Nearly two years after the country’s landmark bourse launched in July 2011 — although the first public offering wasn’t until April the next year — only one company has listed: the state-owned Phnom Penh Water Supply Authority. Two other state-owned enterprises, Telecom Cambodia (TC) and the Sihanoukville Autonomous Port were expected to join the utility. The port, however, is still working on its IPO, and in March, TC’s plan to list was derailed following an alleged embezzlement scandal and a shake-up at its top levels.
May Kunmakara
http://www.phnompenhpost.com/business/cambodia%E2%80%99s-bourse-sees-record-low-volume
