According to the latest equity securities statistics from the Cambodia Securities Exchange (CSX) for the fourth quarter (Q4) of the previous year, market capitalisation decreased by 12.8 percent in comparison with the previous year.
The report also indicates a decline in trading activity across all metrics, including the total trading value, volume, and daily average, suggesting a decrease in investor interest.
Market capitalisation decreased from 12.8 trillion riel ($3.16 billion) in Q4 2023 to 11.12 trillion riel ($2.72 billion) in Q3 2024, and increased marginally to 11.17 trillion riel ($2.73 billion) in Q4 2024. The daily average trading value experienced a 33.8 percent decrease to $105,332 in Q4 2024 from $159,082 a year ago.CSX CEO Hong Sok Hour provided insights into trading volume, stating that it fluctuated between $100,000 and $200,000 on average per day, with an average daily trading volume of 101,843 shares. Local investors accounted for up to 93 percent of these transactions.Furthermore, the number of buy and sell orders executed daily increased by 20 percent to an average of 3,627 in 2024 compared to the previous year.
In addition to the use of Negotiated Trading Methods (NTM) by investors, CSX also received 10 transactions for stocks such as PAS (Sihanoukville Autonomous Port), GTI (Grand Twins International (Cambodia) Plc), and PWSA (Phnom Penh Water Supply Authority). The total trading volume for these transactions amounted to 1,213,554 shares, equivalent to 6.2 billion riel ($1.5 million), with 60 percent of the trade by foreigners.
On a positive note, the number of new trading accounts increased by 21.2% to 58,394 in Q4 2024 from 48,186 in Q4 2023, a development Sok Hour noted was occurring gradually, despite the decreased trading volume.
Last week, CSX Taihy Try, the acting director of market operations at the Cambodia Securities Exchange (CSX), announced that three companies are expected to launch initial public offerings in 2025, with four new bond issuances anticipated, as well as Exchange Traded Funds (ETFs) to spur the growth of the local bourse.
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