Logo of Phnom Penh Post newspaper Phnom Penh Post - Stock Roundup: Nexbis stock plunges as mining firms suffer

Stock Roundup: Nexbis stock plunges as mining firms suffer

Stock Roundup: Nexbis stock plunges as mining firms suffer

AUSTRALIAN telecommunications security supplier Nexbis saw shares plummet last week after it failed to immediately disclose negotiations with the Cambodian government over a US$700 million deal to improve national security systems in the Kingdom.

The company had initially rallied 3.85 percent on the Australian stock exchange on Wednesday when it confirmed, following an Australian news report, that it was negotiating with the Cambodian government for a contract to “improve national security systems in areas such as passport-printing and identity card production”.

The deal between Nexbis Malaysia and the Cambodian government was approved in Phnom Penh on May 10.

However, the following two days saw stock price fall more than 3 percent a day to close at A$0.125 (US$0.104) on Friday – a 10.19 percent drop compared to its opening price on Monday, May 17.

Vimpelcom, parent company of mobile-phone operator Beeline, similarly shed more than 10 percent on the Nasdaq last week, posting some of its lowest prices in this calendar year.

After selling at almost US$17 a share on Friday, May 14, it had dropped to a week-low of $14.77 by Friday, but managed to finally close at $15.01.

Beeline is currently facing a $2.5 million lawsuit from Cambodia’s leading operator Mobitel in Phnom Penh’s Municipal Court.

Sydney mining stocks also struggled under expectations of a resources tax, whereby companies are effectively taxed 40 percent on pre-tax profits.

Oz Minerals, which operates concessions in western Cambodia, stated Wednesday it would not be able to finish the analysis of its Australia-based Western Copper underground project until detail is known about the government’s planned resources tax, according to Bloomberg. Its share price fell until a late rally on Friday to close at A$1.05 – a 3.23 percent drop over the week.

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