Cambodia Securities Exchange CSX
Having experienced more than a decade of economic growth after several years of civil unrest
and political problem, Cambodia has been maintaining stable its social and economic sectors to
always be a better one. After growth of the economy and stable political factor, Cambodia
recently has conducted an initiative idea of having a first new ever for its Securities and
Exchange Commission of Cambodia (SECC), and Cambodia recently successful launched its first
securities market named Cambodia Securities Exchange (CSX). By having stock market, it is
good for businessmen and investors who are able to expand their business by issuing stocks as a
way of raising more and more cashes, and they do not take loans from the banks.
However, creating securities market is a new concept for Royal Government of Cambodia
(RGC) and it is not easy to run securities market smoothly without accountability, transparency,
public awareness, and public trust. Moreover, whether Cambodia securities market works well or
not, it depends on the number of companies willing to put their capital into the securities market
and the number of public investors willing to invest in the market. In addition, providing training
about securities market, education is important for potential investors. It is impossible to make it
happen if investors do not understand the process of securities market.
Financial market of Cambodia, which is named Cambodia Securities Exchange (CSX), was
officially opened on July 11, 2011 after being delayed for several years. The CSX has functioned
as a joint venture between the Cambodia, Ministry of Economy and Finance (MEF) and Korea
Exchange (KRX) since 2007. The Cambodia Securities Exchange is held 55 percent by
Cambodia and another 45 percent by Korea Exchange, as well-known securities exchange
operator of the Republic of Korea.
The Cambodia Securities Exchange (CSX) first witnessed traders on its floor on April 18,
2012, when Cambodian Prime Minister Hun Sen rang the opening bell after the Phnom Penh
Water Supply Authority (PPWSA) secured its listing on the exchange. On the day of the first
trading session, institutional and retail investors traded 879,426 shares which worth about $2
million. PPWSA closed at 9,300 riel ($2.33), from an opening of 6,300 riel ($1.57), a 48 per cent
bump. But after reaching a peak of 10,200 riel ($2.55) on April 23, 2012, the price started to fall
below 6,300 riel ($1.57) as initial public offerings (IPOs) price. Nowadays, there is almost no
fluctuation in price and volumes are tiny. According to the Securities and Exchange Commission
of Cambodia (SECC), a total of about 4,300 investors, on average, only about 100 domestic and
foreign investors are participating actively in trading Phnom Penh Water Supply Authority shares
every trading day.
The Cambodia Securities Exchange (CSX) has been slow progress in its first few years of
operations because there has been only one listed firm and public knowledge and trust about the
securities market remains low. There are only about 3,700 accounts at the exchange, and still
only 12 companies trading there. A third of the accounts are foreign. Currently, the Cambodia
Securities Exchange building remains quiet, with only about 2,000 shares traded. The idea of the
stock exchange is still new, which makes it difficult for Cambodian people to invest in it. Unlike
people in developing countries, Cambodians, with restricted knowledge, are reluctant to invest
their money in something they have never experienced before. And some people even compare
investing money in the stock exchange to playing a game. Cambodia needs at least another few
years to promote public awareness and trust about the market.
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