Friday, April 20, 2012

Cambodia's first-ever stock starts trading at local bourse

PHNOM PENH, April 18 (Xinhua) -- Cambodia's Securities Exchange (CSX) began trading for the first time on Wednesday with one listed company, the state-owned Phnom Penh Water Supply Authority (PPWSA).
The stock trading marked the first-ever in Cambodia's history.
In the first IPOs (Initial Public Offerings), the PPWSA sold 13 million shares, or 15 percent of the company's whole shares. The offering price per share is 1.57 U.S. dollars, Hean Sahib, the CSX 's chairman, said at the launch of the securities trading.
The launch was marked with a congratulatory message from Prime Minister Hun Sen. "The securities trading creates a historic event for Cambodia," he said in a recorded video footage and played at the launch.
"The launching of securities trading will finally end the wait from the public, national and international investors for the birth and operation of this new market," said the premier.
He said the trading operation would play a crucial role as an additional catalyst to enhance the effectiveness of the economic policies of the government, and to improve the push for an actively strong and sustainably growing economy.
The stock market will open new possibilities and opportunities in mobilizing capital and financial resources from both domestic and foreign markets for the development of the enterprises in Cambodia, he added.
"Via the stock market, it will help improve corporate governance and effectiveness of the management of the enterprises in order to ensure the confidence of the investors and the public," he said.
Yoo Jae Hoon, Standing Commissioner of South Korea's Financial Services Commission, said that the stock market would largely contribute to the development of Cambodia's economy.
"It will play a very important role in mobilizing funds for the development and expansion of enterprises," he said. "The launch also reflects closer economic cooperation between South Korea and Cambodia."
Speaking at the launch, Cambodian Deputy Prime Minister and Finance Minister Keat Chhon appealed to private companies, which are adequately qualified, to prepare themselves to list on the CSX.
"I'd like to appeal to national and international investors to participate in securities trading, and provide their support to this young, but full-of-potentials securities market," he said. "I strongly believe that a lot of companies will list on the CSX this year."
The PPWSA's price surged about 50 percent to 9,300 riel, or 2. 32 dollars, as the settlement prices for the first trading day, which wrapped up at 12 a.m. local time, with a total trading volume of 879,426 for both sessions.
The settlement price for Wednesday's first trading session is 9,400 riel, or 2.35 dollars, almost hitting the upper limit of 50 percent for the stock's opening session.According to Cambodia's trading rules, there are two trading sessions everyday. The first one starts at 8 a.m. and ends at 9 a.m. while the second one lasts from 9 a.m. to 11: 30 a.m. local time.
The CSX was initiated by the Korean Exchange in 2007. It is a joint venture between the government of Cambodia holding 55 percent of the stakes and the Korean Exchange owning the remaining 45 percent.
It was officially inaugurated in last July, but there was not any listed company at that time.
The PPWSA is one of the three state-owned to-be-listed enterprises. The two others are Sihanoukville Autonomous Port and Telecom Cambodia.

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