Cambodia Investment Review
The Cambodian stock market concluded the fourth quarter of 2023 with mixed signals, as trading volumes surged and market capitalization hit a new high despite a slight fall in the index and a dip in trading value. Investors exchanged equities worth approximately $9.4 million, and while the market index saw a marginal decline to 472 points, the number of trading accounts rose sharply, indicating a growing retail investor base.
During the quarter, a total of 7,480,198 shares changed hands. The trading activity for the period, however, marked a downturn from the previous year, with the total trading value dropping to $9.4 million. The stock listings remained consistent at 11, mirroring the count from Q3 2023. An strong leap in market capitalization was recorded, with figures soaring to an estimated $3.14 billion.
Growth In Market Capitalization Was Exceptional
In a statement to Cambodia Investment Review, CSX Director Kim Sophanita shared insights into the quarter’s performance. “The growth in market capitalization was exceptional, over 71% higher than Q4 2022, primarily driven by the listings of CGSM and MJQE. The number of trading accounts has seen a 33% increase from Q4 2022, with nearly 12,000 new accounts opened. The advent of our 2nd generation Online Account Opening system has streamlined the process, catalyzing this surge alongside our dedicated promotional efforts,” Kim explained.
“Yet, we observed a decrease in trading value due to a significant drop in the trading of ABC, a major stock, by almost 46% year-over-year. Despite a 2% decrease in the index from Q4 2022, we ended on a positive note with almost a 4% increase from Q3 2023, thanks in part to CGSM’s stock price escalation of nearly 9%,” she added.
The stock market’s landscape was redefined by the contrasting performances of various stocks. JSL, traded on the Growth Board, emerged as the quarter’s star, clinching an impressive 76.71% hike in its closing price compared to its opening figure. On the Main Board, PEPC also witnessed a commendable gain, escalating by 17.60% by the quarter’s end. Conversely, GTI saw the quarter’s steepest decline, with its closing figure falling by 8.39%. PWSA faced a more moderate setback, with a 0.55% fall in its closing price.
Evolving Nature Of Cambodia’s Stock Market
The contrasting stock performances and the overall market dynamics underscore the evolving nature of Cambodia’s stock market. The significant rise in trading accounts highlights the market’s expanding accessibility to a broader investor audience, reflecting a trend towards increased retail investment. This increased participation, facilitated by technological advancements in account openings and heightened market awareness initiatives, paints a promising picture of the market’s potential to attract even more investors in the upcoming periods.
However, the quarter’s downturn in some high-profile stocks serves as a reminder of the market’s inherent volatility. The decline in ABC’s trading value significantly impacted the market’s trading value, demonstrating the weight that major stocks hold within the CSX Index. Nonetheless, the gains by CGSM have provided a counterbalance, softening the index’s year-over-year fall and indicating a resilient market capable of weathering fluctuations.
