The Cambodia Securities Exchange, located in Phnom Penh near Wat Phanom, is Cambodia’srecently established stock exchange.
Cambodia Securities Exchange
The Cambodia Securities Exchange is not open to the public but you can see the magnificent colonial era mansion, with its newly Khmer style tower at the main entrance, from Street 106.
About the Cambodia Securities Exchange
The Cambodia Securities Exchange (CSX) opened in 2010, and moved to it current location in 2014. The CSX started operating as a bourse in July 2011, albeit without any stock to trade. A shaky start to the new venture if ever there was one. The first listing for a stock came 9 months later with the floatation of the Phnom Penh Water Supply Authority (PPWSA) in April 2012. The demand for share was phenomenal, with shares in PPWSA over subscribed by a factor of 10 and increasing in price by 48% over the course of the day. The demand for Cambodian stocks was clear from then on.
The Cambodia Securities Exchange is on Street 106
The Cambodia Securities Exchange, however, grew very slowly thereafter demonstrating the unpreparedness of commercial ventures in the country to take advantage of the potential of raising capital for investment through the stock market. The second listing on the CSX came 3 years later in 2015 when Grand Twins International, a Taiwanese clothing manufacturer with a production base in Cambodia, was floated on the CSX. Again the offering was massively oversubscribed and the share jumped rapidly in value. The pace of development of the Cambodian stock has sped up significantly since those early years. There are now 5 companies whose shares are listed, and the rate of the increase in stock market capitalisation has been remarkable bucking the bear market trend which dogged other Asian and Western stock markets at the end of 2018: between the end of 2017 and the end of 2018 the market capitalisation of listed shares on the CSX grew 44% from $303.80 million USD to $442.92 million USD. With plans to liberalise business regulation in Cambodia and allow greater foreign involvement in the Cambodia market we can see CSX listings becoming a hot ticket for foreign investors in the near future. At the present time trading only takes places from 09:00 to 11:00. This will change in the future no doubt, and we can expect to see this sleepy part of the city turn into a hive of activity with more ex-pat professionals moving to Phnom Penh to become involved in the local securities market, and hopefully driving development in Cambodia to the benefit of everyone in the country.