The price of Phnom Penh Water Supply Authority shares have fluctuated by only US$0.04 during the past 12 days of trading.

The low price and a lack of liquidity on the market may account for the low volume of shares traded, insiders said, which averaged at 55,773 during the 12-day period.

PPWSA closed at 7,200 riel ($1.78) yesterday, down 0.69 per cent. More than 15,200 shares were traded. The price stayed constant at 7,300 during the four trading days between May 24 and 29, Cambodia Securities Exchange data showed.

“One of the biggest problems now is lack of liquidity. But this is a very new market and you can see this in many markets like in Vietnam and Laos,” a source at Cambodia-Vietnam Securities Plc, who was not authorised to speak with the press, said yesterday by phone.

“After more companies list on the CSX, there will be more liquidity and this problem will be resolved.”

Many traders are not willing to buy or sell at current prices, the source said. Would-be buyers find the price high, while sellers stand to make little profit, or lose, after the stock’s original climb to 10,200 riel.

But liquidity isn’t the only factor accounting for the low level of action on the exchange during the past few weeks. World markets have been down, keeping some international investors out of Cambodia for the time being, the source said.

Domestic factors could include the commune elections which will start on Sunday.

To contact the reporter on this story: Don Weinland at [email protected]