CSX expecting to welcome three more companies to be listed by end 2023

and MJQE stocks were listed on CSX on the 27th and 28th of June 2023 respectively, the market capitalization of the main board has increased significantly to approximately $3.09 billion by the end of the second quarter of 2023 compared to $1.87 billion in the same quarter of the previous year. Sok Hour pointed out that CGSM and MJQE have also reduced the stock dominance of ABC—stock symbol of Acleda Bank Plc—on Cambodia’s stock exchange as ABC used to account for approximately 91 percent of the total trading value in May, but after the listings of both CGSM and MJQE, ABC’s trading value showed a decline to date. CGSM and MJQE have remarkably reduced the ABC stock trading domination in terms of trading activities as ABC used to account for between 80 percent and 90 percent of the total trading value this year. However, after the IPO of CGSM and MJQE, ABC’s contribution dropped to as low as 38 percent of the total market share on the bourse while CGSM and MJQE accumulated about 34% and 19% respectively. This indicates that alongside the ABC stock, CGSM and MJQE stocks are also becoming active stocks or rising stars that both individual and institutional investors are enticed to invest in. In terms of market price indicative, MJQE had slight impact on the CSX index due to its small market cap, but CGSM has become another key player equivalent to ABC in determining the day’s index movement thanks to its equivalent market cap as ABC has $1.08 billion, while CGSM has $1.18 billion and the rest of stock stocks combine $0.79 billion. Sok Hour also said these two newly listed stocks also brought huge investment momentum in July this year has driven the price of other stocks up such as PPSP, GTI and PEPC. However, CSX’s second quarterly report shows that the trading value and trading volume have declined compared to the same period of last year. Sok Hour further pointed out that the decline was possibly resulted from various factors ranging from the shortage of negotiated trade or so-called NTM trade compared to the second quarter of the previous year when there was the highest record of an NTM trade at CSX on ABC stock,

Despite the growing concerns and economic uncertainties, the market operation has performed quite reasonably well over the past nine months of this year”

“Looking from the fundamental analysis perspective, the slight fall of the [market] index resulted from consumer speculation on the economic uncertainty caused by different current micro and macroeconomics factors” CSX’s senior officials said. Meanwhile the technical analysis perspective, the CSX index’s decline in second quarter of this year was due to the decrease of ABC stock price of about 7 percent after dividend distribution in early May. As ABC was the highest weighted stock on the main board prior to the listing of CGSM, it had the largest impact to the Index. “However, the index has shown a stable performance later on,” Sok Hour said.

… the index has shown a stable performance later on.”

The market cap of the main board in the second quarter of 2023 increased significantly due to the IPO of CGSM and MJQE into the securities market on the 27th and 28th of June respectively. For instance, the CGSM accounted for approximately $1.18 billion in additional market cap during the Initial Public Offering (IPO) while MJQE accounted for about $173 million in additional market cap during IPO. Meanwhile, the decline of the growth board market cap resulted from the decline of JSL and DBDE stock prices as some of the investors may have switched to purchase the newly listed stocks. The Securities and Exchange Regulator of Cambodia (SERC) and CSX have been working hand in hand to introduce listed fund product to accommodate the demands of fund market in Cambodia and to digitalize account opening process. Meanwhile, CSX has been working to introduce new trading and settlement facilities such as Margin Trading, Foreign Currency Settlement, and improving the trading platform and tools.

“Additionally, we have been working with foreign exchanges to conduct market research and market promotion,” said Sok Hour, adding that CSX and SERC have also been conducting educational program at institutions, banks, universities and more to promote the usage of CSX Trade and the overall securities market to the public and potential securities investors. In addition, to attract more investor to Cambodia securities market, the SERC accredited ACLEDA Bank as a Custodian Agent in Securities Sector. Sou Socheat, Director General of SERC, also told Cambodia Business that the key roles of custodian agent include the opening of custody account for clients, safekeeping the securities, cash and other assets, placing bid or ask orders on behalf of the clients, and settling the cash, securities and other assets on behalf of the clients.

“On top of these, another important role of custodian agent is the channeling for cross-border securities transactions services that would be one of the channels for attracting foreign and institutional investors. The custodian agent can’t play role as an underwriter, but it is one of the key players in building more market confidence and attract foreign investors to our marketsaid Socheat. SERC’s Securities Trading Statistical Bulletin for the second quarter of 2023 shows that currently, there are two types of securities, stock and bond, traded in the CSX. For equity market, there are 11 listed companies in which 9 companies listed on the Main Board and Two companies listed on the Growth Board. These 11 companies raised USD128 million from the market.