Logo of Phnom Penh Post newspaper Phnom Penh Post - Low price slows trade of PPWS on exchange

Low price slows trade of PPWS on exchange

Low price slows trade of PPWS on exchange

The price of Phnom Penh Water Supply Authority shares have fluctuated by only US$0.04 during the past 12 days of trading.

The low price and a lack of liquidity on the market may account for the low volume of shares traded, insiders said, which averaged at 55,773 during the 12-day period.

PPWSA closed at 7,200 riel ($1.78) yesterday, down 0.69 per cent. More than 15,200 shares were traded. The price stayed constant at 7,300 during the four trading days between May 24 and 29, Cambodia Securities Exchange data showed.

“One of the biggest problems now is lack of liquidity. But this is a very new market and you can see this in many markets like in Vietnam and Laos,” a source at Cambodia-Vietnam Securities Plc, who was not authorised to speak with the press, said yesterday by phone.

“After more companies list on the CSX, there will be more liquidity and this problem will be resolved.”

Many traders are not willing to buy or sell at current prices, the source said. Would-be buyers find the price high, while sellers stand to make little profit, or lose, after the stock’s original climb to 10,200 riel.

But liquidity isn’t the only factor accounting for the low level of action on the exchange during the past few weeks. World markets have been down, keeping some international investors out of Cambodia for the time being, the source said.

Domestic factors could include the commune elections which will start on Sunday.

To contact the reporter on this story: Don Weinland at [email protected]

MOST VIEWED

  • Malaysia MP accused of ‘influencing law’

    Malaysian Member of Parliament (MP) Larry Sng arrived in Siem Reap early on Wednesday, in what was slammed by one NGO as efforts by Kuala Lumpur to “influence Cambodian law”. The Malaysian Embassy in Phnom Penh requested on January 30 “cooperation from the Ministry of Foreign

  • Emirates launches route connecting Phnom Penh, Bangkok

    Emirates will launch a daily service on June 1 linking Phnom Penh (PNH) and Bangkok (BKK). The service from Phnom Penh to Dubai, via Bangkok, will provide more flight options to passengers travelling between the capitals of Cambodia and Thailand. Travellers from the Southeast Asian nations

  • US Embassy urged to stop ‘disrespecting sovereignty’

    The Ministry of Foreign Affairs and International Cooperation called on the US Embassy in Phnom Penh on Saturday to respect the Vienna Convention on Diplomatic Relations after it called former opposition leader Kem Sokha “an innocent man” – a move deemed to be “disrespecting Cambodia’s

  • Rainsy will return at ‘favourable time’

    Opposition figure Sam Rainsy on Saturday suggested he would not return to Cambodia as he had previously promised, saying that like liberators King Father Norodom Sihanouk and Charles de Gaulle, he would only do so at a “favourable time”. “I will go back to Cambodia