Logo of Phnom Penh Post newspaper Phnom Penh Post - Cambodia’s only stock plummets, shares sold off

Cambodia’s only stock plummets, shares sold off

Cambodia’s only stock plummets, shares sold off

In another record-breaking low point, shares of the Phnom Penh Water Supply Authority dipped under 5,000 riel by market’s close yesterday, while one investor sold off some 25,000 shares.

The price drop came amid heightened tensions in Phnom Penh. Opposition Cambodia National Rescue Party lawmakers followed through on promises to abstain from attending the inaugural session of the National Assembly after their demands for an investigation into alleged irregularities during the July 28 poll weren’t met. Ruling Cambodian People’s Party lawmakers attended the opening.

Security forces, local authorities and riot police hunkered down on street corners or manned steel and razor-wire barricades, a presence that choked local businesses and raised concern among investors.

According to data from the Cambodia Securities Exchange (CSX), the water supply authority’s price declined 4.35 per cent yesterday to 4,840 riel, down from 5,060 riel at closing on Friday.

Soleil Lamun, deputy director of the market operations department at the CSX, blamed the prices – which first inched downward weeks ago and have continued to fall ever since – on the lack of investor confidence brought on by an uneasy political climate.

“This morning placed more of a burden on PPWSA prices that were already slowing because of the political deadlock,” Lamun said yesterday. What’s worse, “only one foreign investor sold the stock at the lowest price, and it made him or her lose a lot of money – this makes our market look not so good”.

“I think this person might be concerned about the political issue, but they could just urgently need the money – I am not sure,” he added.

He said that even though the price sank to new depths – shares closed at 9,300 riel when PPWSA went public last year – the fact that a sale was made shows that investors are still interested.

Kuy Vat, chairman of underwriter Phnom Penh Securities, agreed that the political stalemate sapped market confidence.

“Of course, the investors are concerned about our political issues, so they will not focus on the stock,” he said.

The water authority issued some 13 million shares to the public in 2012.

MOST VIEWED

  • Hun Sen rejects ‘rift’ rumours spread by ‘stupid gangsters’

    Prime Minister Hun Sen on Wednesday denied a “rift” among top leaders of the Cambodian People’s Party (CPP), and rejected claims that Senate president Say Chhum and Interior Minister Sar Kheng were set to be removed from their positions as rumours spread by “gangsters”.

  • Huge 3.5-tonne ivory haul seized in capital

    Working with US officials, Phnom Penh Autonomous Port has uncovered almost 3.5 tonnes of elephant ivory hidden in a container, the US Embassy in Cambodia said on Facebook on Saturday. A tip-off provided to the General Department of Customs and Excise by a US Fish and

  • EU ambassador to Cambodia: Rights a ‘work in progress’

    The EU ambassador to Cambodia has called human rights “a work in progress” and said the 28-nation bloc has “carefully” noted last week’s statement by the government on taking further steps to strengthen democracy and the political sphere in the Kingdom. The EU marked

  • Assembly passes amendment to Political Party Law Article 45

    The National Assembly on Thursday unanimously approved a proposed amendment to Article 45 of the Law on Political Parties in a move that could pave the way for former senior opposition leaders banned for five years to return to the political stage. As expected, the 115 ruling