Cambodia’s Securities Exchange has reported a 421% year-on-year record trading quarter with 30 million shares worth $77.91 million exchanged as the overall index fell 11% to 491 points and market cap also dropped 9% to $1.86 billion.
No company stocks on the CSX increased in price during the quarter with the worst-performing stocks including Acleda Bank (CSX:ABC) and growth board listed JS Land (CSX:JSL) which fell 17.3% and 19.86% respectively.
Speaking to Cambodia Investment Review CSX Director Kim Sophanita explained a contributing factor to the overall market decline was the quarter marked post dividend distribution season.
“Most stocks announce dividend in this quarter so stock prices generally go up when it’s near dividend distribution, weeks or months before and it drops right after the date which is entitled to a dividend as the buyer has no right to receive it until next year,” Kim said.
Uncertainty over mid-term economic outlook
Market Analyst and Managing Director of brokerage firm Yuanta Securities Kyung Tae Han told Cambodia Investment Review the overall downtick was less about dividends and more about the interest rates, liquidity, and mid-term economic outlook.
“Increasing interest rates together with murky mid-term economic outlooks driven by soaring inflations across the globe may continue to put pressure on the business earnings, dividends, and in turn investors sentiments,” Han said.
“But on the other hand, as almost always, the situations like this provide the rarely good opportunity to pick up some undervalued stocks that will bring decent long-term returns. So-called ‘Buy-Low’ opportunities,” he added.
The record quarter comes after a previous record with $27.4 million traded increasing 221% from $8.5 million in the same period of 2021. To read more about CSX Q1’2022 trading statistics click here.
The main reason for the record quarterly trading amount was attributed to the investment firms Morgan Stanly’s $43.23 million purchase of Acleda Bank shares marking the largest ever Negotiated Trading Method buy.
The deal was approved by shareholders during an Extraordinary General Meeting held last year when ABC shareholders approved the transfer of a 3.5 percent stake in the lender from Triodos to North Haven Thai Private Equity Rumdul Company (Hong Kong) Limited.
The previous record for an NTM was $16.77 million by Royal Group which purchased a majority share in Phnom Penh Special Economic Zone and brokered by SBI Royal. To read more about the Morgan Stanly purchase click here.
Acleda Securities wins ‘Best Securities Broker Award’ for Q2
Acleda Securities Plc has won the Second Quarterly ‘Best Securities Broker Award’ for 2022 beating out 12 other licensed firms awarded by Cambodia Securities Exchange (CSX).
The quarterly award is determined by calculating the total trading value (accounting for 60%) and the number of new trading accounts opened (accounting for 40%) as well as overall Mobile Trading System usage.
According to CSX, Acleda Securities trading accounts bought and sold approximately $150 million worth of stock accounting for 96% of total trading on the exchange. In addition, 84% of new accounts were opened through the leading broker. To read more about Acleda Securities Q2’2022 click here.