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PPWSA’s stock price tumbles to all-time low

PPWSA’s stock price tumbles to all-time low

In a six-day slide, the share price of Cambodia’s only listed stock, the Phnom Penh Water Supply Authority (PPWSA), closed yesterday at an all-time low, some 40 per cent down from its first-day closing price.

PPWSA finished trading on the Cambodia Securities Exchange (CSX) at 5,360 riel ($1.34) per share yesterday compared with its 9,300 riel close on its first day of trading on April 18, 2012.

The fall began on September 6, a day before the opposition Cambodia National Rescue Party (CNRP) began its most recent rally against alleged election irregularities.

Declines continue in a tense environment in which the opposition has called for a further three-day protest beginning on Sunday.

Market observers attribute the slide to investors' nervousness in the wake of the political deadlock and expect further losses until the dust settles and a new government is formed.

“In my personal opinion, this diminishing price is not related to the business performance of the PPWSA because they are doing their job well,” said Soleil Lamun, deputy director of the Market Operations Department at the CSX.

“However, the sentiment of the [investors] in this market is not different from that in other markets where business activities have become quiet since the elections.”

Svay Hay, president and CEO of brokerage securities firm Acleda Securities sees opportunities while the stock is down.

“Some new investors would see this as a chance to inject cash to this stock investment,” he said.

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