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Cambodia: CSX anticipation of no curfew impact on trading falls short
The Cambodia Securities Exchange (CSX) did not anticipate the curfew to adversely impact market action.
CSX Director Kim Sophanita told Khmer Times last week, “I think the recent decision to institute curfews and lockdowns will not have any negative impact on the capital market given that it is temporary and isolated to eight provinces close to the Thai border, Main commercial areas including Sihanoukville and Phnom Penh where all listed companies and most businesses reside continue to have consistent business activity. The curfew in the capital and cities imposed beginning at 9 pm will not affect their operating hours and will not be a big burden,” she added.
The director’s words rang true as the index closed 0.11 percent higher on Thursday as much of the nation headed into curfew at midnight that evening.
The same held for Friday, with the index down just 0.15 percent lower on an above average, but not abnormal, trading volume of just less than 100,000 shares.
Yesterday however the index dropped below the 540 level on substantially lower trade volume and value, with five of seven stocks headed south and two managing to hold steady.
On the plus side though, the CSX has exhibited an ability to remain resilient throughout the pandemic, particularly during April’s lockdowns. The index actually experienced a substantial increase in trading at that time– a phenomenon it credited to its Mobile Trading System.
Daily trading value during the period increased by 13 percent to approximately $60,000, according to official figures.
“The increased trading activity in the stock market during the lockdown period indicates that investors are turning their interest to stock trading because it is a sector that allows them to still invest and earn even when they stay at home and can not go anywhere,” Hong Sok Hour, chief executive officer of the CSX said in May.
Source: https://www.khmertimeskh.com/50907297/csx-anticipation-of-no-curfew-impact-on-trading-falls-short/