Logo of Phnom Penh Post newspaper Phnom Penh Post - CSX raises limit on market fluctuations

CSX raises limit on market fluctuations

CSX raises limit on market fluctuations

The Cambodia Securities Exchange (CSX) has decided to increase its daily limit on share price fluctuations, raising the maximum advance or decline from the previous day’s settlement price in an effort to allow investors more room for determining trading prices, according to a recent CSX announcement.

The CSX originally set its daily price limit at a relatively low 5 percent in an effort to maintain stability on its freshly established trading platform and avoid radical changes in the market.

Now, after six years of operations, it has decided to loosen its reins on the market and increase the limit to 10 percent, in turn increasing the likelihood of significant capital gain for traders.

Once a share price has increased or decreased by its daily limit, no more trading activity on the stock can take place for the day.

Lamun Soleil, director of market operations at the CSX, said yesterday that the change could attract investors to trade more actively.

“Stock prices in our market have not fluctuated much because our market is still passive, so it would be better to see more fluctuation,” he said. “We have had our market open for years now, and we can see that the market is safer than we originally thought it might be.”

Soleil said the daily price limit at other stock exchanges in the region have been higher than the original CSX limit, with Thailand’s set at 30 percent while both Vietnam and Laos have theirs set at 10 percent.

Daily price limits are typically set to curb the effects of mob psychology, which often involve panicked buying and selling. They were introduced into financial systems following the stock market crash of 1987.

The CSX also announced that it would now allow block trading, which is a noncompetitive and privately negotiated transaction separate from auction-based trade. It will also begin offering the option for investors to make market orders, buying or selling their investments immediately at the best available current price.

MOST VIEWED

  • Without shoes or a helmet, a young cyclist steals the show

    Pech Theara gripped the curved handlebars of his rusty old bike, planted his bare feet on its pedals and stormed as fast as he could towards the finish line. The odds were against him as the 13-year-old faced off against kids with nicer bikes at

  • Phnom Penh-Sihanoukville expressway on schedule

    The construction of the more than $1.9 billion Phnom Penh-Sihanoukville Expressway has not been delayed despite the Covid-19 pandemic, with more than 26 per cent of the project completed and expected to finish in about two years, according to Ministry of Public Works and Transport secretary of

  • Over 110 garment factories close

    A government official said on November 22 that at least 110 garment factories had closed in the first nine months of the year and left more than 55,000 workers without jobs – but union leaders worry those numbers could be much higher. Ministry of Labour and Vocational Training undersecretary

  • Singapore group seeks $14M in damages from PPSP over ‘breach of contract’

    Singapore-based Asiatic Group (Holdings) Ltd is seeking a minimum of $14.4 million relief from Cambodia Securities Exchange (CSX)-listed Phnom Penh Special Economic Zone Plc (PPSP) for allegedly breaching a power plant joint venture (JV) agreement. Asiatic Group’s wholly-owned Colben System Pte Ltd and 95 per

  • PM vows to protect Hun family

    Prime Minister Hun Sen has vowed to continue his fight against opposition politicians who he said intend to smash the Hun family. Without naming the politicians but apparently referring to former leaders of the Supreme Court-dissolved Cambodia National Rescue Party (CNRP), Hun Sen said there

  • Cambodia lauded for fight against Covid-19

    Cambodia has drawn global accolades for its handling of the Covid-19 pandemic, with a new report finding that the Kingdom has controlled the pandemic better than any other country in Asia. Dr Takeshi Kasai, director of the World Health Organisation’s (WHO) Western Pacific region,