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

  • Draft law on state of emergency pending finalisation

    Prime Minister Hun Sen will lead a top-level meeting on Tuesdays to review the draft law on imposing a state of emergency. Meantime, he has decided to close all casinos in Cambodia effective April 1. In the press conference after the National Assembly met today, Hun

  • State of emergency on table amid pandemic

    Prime Minister Hun Sen, his deputy prime ministers and legal team will meet on Tuesday to review the draft law on declaring a state of emergency, as Covid-19 cases rose to 107 in the Kingdom on Monday. Speaking at a press conference after a parliament meeting

  • Stranded passengers petition UK for help

    Some 10,521 people have signed an online petition calling on British Prime Minister Boris Johnson and relevant officials to fly nearly 200 passengers out of Cambodia. The petition is targeted at 15,000 people. Most of the passengers are British nationals, who are stranded in Cambodia after airlines cancelled

  • No word on state of emergency

    The National Assembly (NA) said it will postpone all unnecessary meetings in line with guidance from the Ministry of Health and the World Health Organisation (WHO) amid the Covid-19 pandemic. However, it did not say when or how it will debate the “state of emergency”

  • Many in limbo as tension heightens

    As the Kingdom restricts travel and prepares for a state of emergency, some foreigners in Cambodia are scrambling for a way home. Foreign embassies in Phnom Penh are making efforts to get their citizens out, but cancelled flights have become common due to the coronavirus

  • Covid-19 Pandemic: Force majeure and legal consequences

    Is the Covid-19 pandemic considered an event of force majeure? The World Health Organisation declared the novel coronavirus (Covid-19) outbreak a pandemic on March 11. Following this declaration, the Ministry of Health and other ministries have taken various legal and administrative measures to prevent the rapid