CSX feels Covid-19 pinch

PHNOM PENH ( The Phnom Penh Post/ANN) - The Cambodian Securities Exchange (CSX) is experiencing a sharp decline in stock prices amid the global spread of Covid-19.

The Cambodian Securities Exchange (CSX) is experiencing a sharp decline in stock prices amid the global spread of Covid-19.

CNN recently reported that markets tumbled on Sunday in the US, with
Dow futures falling more than 1,000 points and the S&P 500 plunging
as much as five per cent, triggering a limit that prevents futures
trading below that mark.

The sell-off continued across Asia-Pacific, where both Australian and Japanese markets fell on Monday.

Wall Street has reported massive losses in the past weeks as a result of Covid-19 fears.

CSX vice-chairman Ha Jong-weon told The Post on Thursday that
the local bourse has also felt the impact of the virus. He said since
mid-February, the index has dropped by nearly 20 per cent.

“We have seen more orders from the sell side, but, most importantly, they are asking for lower prices,” Ha said.

He opined that the effect of the virus on the market will be
short-lived and pointed out that now is the time to buy stocks at a
lower price.

“This outbreak is shaking the world’s stock markets. The drop is
significant in other markets in the region. In Thailand, for instance,
the SET index dropped by nearly 12 per cent during the last few weeks.
Japan, Malaysia, Korea, Singapore showed similar drops,” he said.

Of the five listed companies, the Phnom Penh Autonomous Port (PPAP)
suffered the greatest loss in stock value. Since mid-February, the price
of stocks of the Sihanoukville Autonomous Port (PAS) dropped by about
30 per cent, from 18,460 riel ($4.56) per share on February 17 to 12,780
per share on Thursday.

“If the downward trend continues [because of Covid-19 or something
else] to the point where investors’ confidence and the trade environment
is compromised, we will take preventative action.

“For now, my opinion is that this drop is just part of normal
fluctuations as a result of factors at the macroeconomic level,” said
Ha.

As the market closed on Thursday, CSX Index surged by 4.99 per cent,
jumping to 616.51 points. This reflected a significant rebound in the
price of stocks. PAS soared to 13,800 riel after consecutive drops in
the past week.

The other four stocks – Phnom Penh Water Supply Authority (PWSA),
Grand Twins International (GTI), PPAP, and Phnom Penh Special Economic
Zone (PPSP) – reached 6,000 riel, 4,020 riel, 10,700 riel, and 2,550
riel, respectively. Trading value rose to 61.59 million riel.

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