The Cambodia Securities Exchange (CSX) has expressed commitment to increase the number of equity and debt securities traded on the bourse this year, with particular focus on small- and medium-sized enterprises from burgeoning sectors such as information technology, telecoms, healthcare, logistics, and food and beverage.
It also aims to introduce more equity products to the market this year, including the Government Bond Collective Investment Scheme, direct listings without initial public offering (IPO) and holding company listings, the CSX said in its “2021 Achievements and Outlook Towards 2022” report.
At the very core, industry requisites to expand and accelerate the Cambodian capital market involve having more supply and demand, it said, adding that it has devised strategic approaches to this end.
“In 2022, we’ll primarily focus on facilitating and adding new functions to the process of trading, clearing and settlement operations.
“The manner by which we can improve this matter includes but is not limited to the introduction of an app version of the mobile trading system [MTS], online account opening, margin trading, foreign currency settlement arrangements, shortening bond settlement times from T+2 to T+1, the introduction of the CSX’s first custodian agent member, and the establishment of Cambodia investor network.
“Secondly, CSX has engaged in steps toward making Cambodia’s stock data available on global financial platforms.
“We are strengthening our information networks and cooperation via collaboration with relevant parties such as local and foreign media and prominent stock exchanges.
“Fourthly, we are conducting online and public events to raise awareness of the market. Lastly, we are encouraging the production and promotion of analysis research reports.
“We, the CSX, work to ensure a fair and transparent trading environment in order to maintain the confidence and interests of both local and foreign investors,” it added.
Securities and Exchange Regulator of Cambodia (SERC) director-general Sou Socheat recently told The Post that 2022 would be a good year for the capital market to grow, as many more companies plan to list on bourse and host events focused on market development.
He said: “2022 will be another exciting and productive year for SERC, as a capital market regulator in Cambodia and as the ASEAN Capital Market Forum [ACMF] chair.
“Some of our primary considerations are to inspire more companies to list and encourage more trading, by making the listing and trading environment more favourable, diversifying with even more products in the market.
“As a regulator of the capital market, we have always placed investor protection as our main priority. SERC has provided a lot of training to the public, to raise the awareness about the securities market.
“To ensure the market is run smoothly, effectively, orderly and transparently, SERC has always conducted market supervision and surveillance as well as on-site and off-site inspection on the regulated entities even during these pandemic times.”
Last year, the CSX saw its first Growth Board listing, which trades under the DBDE ticker, and the first corporate bond issued by Telcotech Ltd, a subsidiary of Royal Group of Companies Ltd. These securities raised 15 billion and 80 billion riel ($3.66 million and $19.54 million), respectively, according to the report.
The average daily trading volume and value reached all-time highs last year, at 234,628 shares and more than one billion riel, respectively, or up by 400 per cent and 127 per cent over 2020.
The bourse gained more than 4,000 new traders in 2021, bringing the total to over 30,000, as MTS users increased by 7,000.
MTS orders stood at 477,067 last year, up by 281 per cent from 125,268 in 2020, suggesting success in trade digitalisation improvements at the CSX, the report said.