Logo of Phnom Penh Post newspaper Phnom Penh Post - CSX-listed firms urged to pay out dividends

CSX-listed firms urged to pay out dividends

CSX-listed firms urged to pay out dividends

Companies listed on the Cambodia Securities Exchange (CSX) should consider providing higher dividends to shareholders to boost trading activity in the Kingdom, experts at a gathering said on Wednesday.

Speaking at a forum for listed firms on the topic “Potential of Sustainable Growth”, SBI Royal Securities managing director Seng Chan Thoeun said there are several factors causing a lack of liquidity on the CSX. Cash dividends, he said, could attract more investors to the market.

While no exact rate was given, Thoeun said the dividend per share should be equal to or higher than interest rates for deposits at financial institutions. In the Kingdom interest rates for riel deposits currently stand at around seven per cent.

“Companies themselves can help to boost market liquidity. Give more returns [dividend] to others and investors will come,” he said.

There are currently five companies listed on the Kingdom’s fledgeling bourse. Two of them, Phnom Penh Autonomous Port (PPAP) and Sihanoukville Autonomous Port (PAS) have promised private shareholders a five per cent dividend annually for five years and three years respectively.

Attracting investors

Chey Sokunthea, marketing director of PAS, which paid out dividends of 7.9 per cent last year, said there is a positive relation between dividend sharing and stock price. She observed that when the company declared it would offer higher dividends, the stock price increased.

“When we get more profit, we will distribute dividends at a higher rate. We also want to attract investors.”

Ros Kimleang, deputy director general of Phnom Penh Water Supply Authority (PPWSA), agreed that offering higher dividends can help to attract investors.

However, he said his firm has some difficulties in offering such dividends. While PPWSA offered dividends of 3.99 per cent last year, Kimleang said it might not be a satisfying rate for some shareholders.

“The truth is that we need more money for infrastructure development, so we need to reserve funds from profits for our counterpart funds when we borrow money from development partners. This is the reason we have difficulties to paying higher dividends,” said Kimleang.

MOST VIEWED

  • Volunteer scheme to foster ‘virtuous’ humanitarian spirit

    A senior education official said volunteer work contributes to solidarity and promotes a virtuous humanitarian spirit among the youth and communities. Serei Chumneas, undersecretary of state at the Ministry of Education, Youth and Sport, made the comment during the opening of a training programme called “

  • Chinese firms unveil preliminary results on metro, monorail for capital

    Minister of Public Works and Transport Sun Chanthol and representatives from China Road and Bridge Corp (CRBC) and its parent company, the state-owned China Communications Construction Co Ltd (CCCC), met on June 24 for talks on results of the firms’ preliminary study on a potential metro

  • ACLEDA, WU to enable global money transfers

    Cambodia's largest commercial bank by total assets ACLEDA Bank Plc and global money transfer firm Western Union (WU) have partnered to offer customers cross-border money transfers to 200 countries via “ACLEDA mobile” app. In Channy, president and group managing director of ACLEDA, said the June 22 agreement

  • Num banh chok pizza a new fusion hit

    Num banh chok is a traditional fish curry with fermented rice noodles, prahok fish paste, kroeung paste, flowering plants and seasonal vegetables that is arguably a strong contender for “national dish” status in Cambodia and typically served for breakfast or eaten as an afternoon snack.

  • Cambodia detects new Covid cases after 52 days: PM

    After 52 days of zero new Covid-19 cases, Cambodia has now detected new infections, according to Prime Minister Hun Sen. In his special audio address to the nation late on June 28, Hun Sen said the new cases were detected on people who had undergone PCR tests

  • Higher education leaders tour US

    With support from the US Department of State, 10 Cambodian leaders in higher education participated in the 10-day International Visitors Leadership Programme (IVLP) in three US states from June 19 to July 1. They included nine university rectors and directors of higher education institutions who are members of