Thailand
Cambodia: PPSEZ buyback approval speculation spurs high exchange trading volume
Phnom Penh Special Economic Zone Plc (PPSEZ) shares have seen high volume of shares trade hands over the last three trading days.
A combined total trading volume of 308,838 shares were made between Wednesday and Friday.
Wednesday saw 142,201 shares exchanged, with Thursday trades reaching 99,870 and 66,767 being moved on Friday.
The three-day trading surge accounted for over 10 percent of the firm’s total trading volume in Q4 2020 of 2,894,601 shares exchanged over the period.
Jong Weon Ha, chief operating officer of the Cambodia Securities Exchange (CSX), told Khmer Times that the high volume may be attributed to a proposed share buyback announced in late 2020 by PPSEZ. That share buyback would be the first in CSX history, if approved.
“I personally believe that smart investors are buying the stock because it is undervalued and will sell it at a higher price, especially because the company has a plan to do a buyback of their shares,” Ha said.
Hiroshi Uematsu, chief executive officer of PPSEZ, was unable to comment on the curremt status of the buyback.
Instead, he referenced a March 12 article published by Khmer Times that reported the PPSEZ having confirmed it had submitted all the necessary paperwork to the Securities and Exchange Regulator of Cambodia for the share buyback proposal to be approved.
The last shareholder meeting PPSEZ held approved the suspension of dividends and the share buyback plan.
Its Q4 2020 report showed that the company had seen year-on-year revenue growth of nearly 36 percent.
Shares of PPSEZ, which trade under the ticker symbol PPSP, closed 1.71 percent higher on Friday, reaching 1,780 riels per share.
That session marked six consecutive days that the company ended a trading day in the green.
Source: https://www.khmertimeskh.com/50828283/ppsez-buyback-approval-speculation-spurs-high-exchange-trading-volume/