Stock trading in red in Q3 amid low market liquidity

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CSX market index decreases 0.37% On November 21th, 2022, the CSX market index showed another brutal day for investors, dropping 0.37% from 475.76pts to 473.99pts. On the mainboard, PEPC was the only stock that gained today. PEPC shares rose 0.32% from KHR3,140 to KHR3,150. Meanwhile, PWSA, PAS, ABC shares retreated by 0.27%, 0.76%, 0.38% respectively. GTI, PPAP, PPSP and DBDE shares were unchanged today. On the growth board, DBDE shares remained unmoved, while JSL showed a little progress from last week with a 0.4% gain. (Source: Yuanta Securities)

Economy and Industry

Cambodia, Vietnam laud economic partnership Cambodia and Vietnam have spoken highly of their economic partnership, bringing about their bilateral trade volume to $10 billion this year. The appreciation was made by Prime Minister Hun Sen and visiting Chairman of the National Assembly (NA) of Vietnam Vuong Dinh Hue, during their courtesy meeting here at the Peace Palace in Phnom Penh yesterday, according to Eang Sophalleth, personal assistant to the Prime Minister. PM Hun Sen said good economic partnership will help promote the relations between the two countries in terms of politics and other domains. For his part, Dinh Hue expressed his delight with the good relationship and cooperation, especially on trade between the two neighboring nations. The Vietnamese NA chairman congratulated Cambodia on its rapid development as well as its success in controlling the COVID-19 pandemic and hosting the 40th and 41st ASEAN Summits and Related Summits. (Source: Khmer Times)

Cambodia-Korea trade surges 16% to $920 million The bilateral trade between Cambodia and South Korea reached $920 million in ten months of 2022, a year-on-year increase of 16.3 percent, according to a report from the Korea International Trade Association (KITA). In the January-October period, Cambodia exported $341 million worth of goods to Korea, up 20.7 percent as compared to the same period last year. Cambodia imported $579 million worth of products from the East Asia nation, up 8.1 percent year-on-year. Cambodia mainly exported footwear and other apparel, travel products, beverages, electrical and electronic components, rubber, pharmaceuticals and agricultural products to South Korea. The Kingdom imported vehicles, electronics, kitchen appliances, beverages, pharmaceuticals and finished plastics and products. The two countries are about to put into force the bilateral free trade agreement in December, which is set to deepen the economic ties. The Cambodia-Korea Free Trade Agreement is expected to boost trade between the two countries, with South Korea agreeing to remove tariffs on 95.6 percent of products imported from Cambodia, while Cambodia will eliminate duties on 93.8 percent of imported goods. (Source: Khmer Times)

Stock trading in red in Q3 amid low market liquidity The quarterly data of securities market operations shows that the trading value and volume in Cambodia's stock exchange decreased in the third quarter of this year compared to the previous period as the market has been negatively affected by the slowdown of the economy, low market liquidity, according to the top official of the country's regulator. The trading volume of the equity market has fallen sharply by 78.59 percent to 6.47 million shares in the July-September period of this year from 30.19 million shares in the same period of last year. The third quarterly report for this year also shows that the number of shares that investors have ordered to buy and shareholders ordered to sell has gone down by 47.06 percent and 47.74 percent respectively, while the number of investors has fallen by 19.92 percent to 5,755 persons in the quarter 3 compared to 7,187 persons in the previous period and the market capitalisation has decreased by 5.18 percent to about $1.75 billion from $1.86 billion. Sou Socheat, Director General of Securities and Exchange Regulator of Cambodia (SERC) said that the share trading figures are expected to bounce back in quarter 4 as some of the companies will give dividends in the final quarter of this year, while trading will be more active than the third quarter as *My First Stock* event has provided free investor ID and then the trading activities is believed to increase. Therefore, it requires all of our effort in organizing campaigns and activities to promote the understanding of the capital market to attract more participants to the market. Kim Sophanita, director of CSX's market operations department, said that she agreed that the trading volume and value declined in the third quarter. However, she added that the decrease was not a potential concern as it is still at a similar level compared to the rest of the quarters except the quarter 2 in which "extra big trade" occurred such as $43 million trading by Acleda Bank Plc. (Source: Khmer Times)

Corporate News

Prudential launches Phase II of "Cha-Ching Money Smart Kids" The Prudence Foundation-- through Prudential Cambodia in partnership with the Child Rights Foundation and the Ministry of Education, Youth and Sport -- this month launched its flagship Cha-Ching Financial Literacy for Children Phase II programme, under the name "Cha-Ching Money Smart Kids". The three-year partnership aims to improve Cambodian children's financial literacy, equipping children aged seven to 12 with the knowledge, tools and practice they need to make financial decisions to reach their personal goals and dreams. Cha-Ching Phase II expands on the success of Phase I, which was implemented from early 2019 to early 2022 in Phnom Penh and Kandal and Kampong Cham provinces, with 150 primary schools involved. The project benefited 39,889, students, 10,704 of whom were girls, and involved 581 teachers, 150 school directors from 150 target schools, 289 parents and 69 government staff. Phase II will expand to 150 new target schools in Kampong Cham, Kampot, Kandal and Siem Reap provinces, and Phnom Penh. As well as the expansion, a main expected outcome from Phase II is have the Cha-Ching curriculum officially integrated into Cambodia's national primary curriculum and implemented across the Kingdom. (Source: The Phnom Penh Post)

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