2 July 2024 - Market Update - B2B Cambodia

This is a B2B Cambodia Market Update for 2 July 2024, reviewing the Cambodia Securities Exchange (CSX) and global markets.

Watch the video in English above.

• The Cambodia Securities Exchange (CSX) Index was up today by 0.83 points or 0.20 per cent to 413.97 points.
• Total trade volume was slightly up, but still fairly light, with 86,405 shares changing hands at a total trade value of 484 million Khmer riel, or roughly $117,700 US dollars.
• On the main board, all stocks except two were in the green, seeing their prices increase. The Phnom Penh Autonomous Port and Grand Twins International were the two biggest winners of the day. The Phnom Penh Autonomous Port was up by 4.65 per cent or 600 riel to 13,500 riel per share, while Grand Twins International was up 4.53 per cent or 130 riel to 3,000 riel per share. 
• Other stocks up were the Phnom Penh Water Supply Authority, Royal Group Phnom Penh SEZ, MJQ Education, CAMGSM and the Sihanoukville Autonomous Port. 
• The two stocks down, on the other hand, were Pestech Cambodia, which was down 0.90 per cent to 2,200 riel per share, and ACLEDA Bank, which was down 0.79 per cent to 7,520 riel per share. 
• Over on the growth board, both companies saw their stock prices increase. JS Land was up 1.66 per cent or 60 riel to 3,680 riel per share, while DBDE Engineering was up 0.48 per cent or 10 riel to 2,080 riel per share.
• Trade volume leader of the day was the Phnom Penh Water Supply Authority with 33,422 shares changing hands at a total value of 247.8 million riel or roughly $60,290 US dollars, accounting for around 22.6 per cent of all shares traded on July 2nd. ACLEDA Bank still came in second, despite being one of the only stocks down on the main board, accounting for 21.5 per cent of the day’s trade activity, with 31,817 shares traded at a value of 240.9 million riel or around $58,600 US dollars.
   
• In other market news, Cambodian fibre optic cable company, Telcotech, announced that the coupon payment of its Corporate Bond has been transferred to all investors’ accounts. According to a disclosure notice published on the CSX website, a total interest payment of 783,203.17 US dollars for for 820,800 bonds was paid on July 1, 2024, with Wing Bank (Cambodia) Plc acting as the paying agent. 
• It's worth noting that Telcotech has listed corporate bonds on the CSX twice already. The company first listed a $20 million dollar bond in 2021 with a five-year maturity, then listed a second $20 million dollar bond, also with a five-year maturity, in 2024.
• CAMGSM also announced its dividend payment to investors, following the annual general shareholders meeting last week on June 28th. An annual Guaranteed Dividend payment of 7 per cent, or 158.90 khmer riel per share, is to be paid in four equal portions quarterly to Class A shareholders. The dividend payment will be made betweenJuly 22-29, 2024. It should be noted that shareholders who sell their shares by July 10, 2024 will be entitled to get the dividend, whereas shareholders who buy shares on and after July 10th will not be entitled to get this dividend.
   
• The Khmer riel to USD weakened slightly to 4,112 riel per US dollar, while the US dollar index was up to 106.
• Oil prices continued to linger near two-month highs with positive demand outlook amid expectations of a busy travel season during the summer. International benchmark Brent crude traded at $86.83 US dollars per barrel, up 0.27 per cent from the closing price of $86.60 US dollars per barrel in the previous trading session. 
• Demand for fuel is expected to grow as the travel-heavy summer vacation season begins. Meanwhile, the long-standing Israeli-Palestinian conflict is continuing to raise geopolitical risks in the Middle East.
• Gold prices slipped on Tuesday as the U.S. dollar held firm, while investors awaited comments from the U.S. Federal Reserve Chair and key jobs data for further clues about the interest rate outlook.
• Spot gold was down 0.2 per cent at $2,327.06 US dollars per ounce. U.S. gold futures steadied at $2,339.10 US dollars.
• Elections are very much on investors' minds when it comes to U.S. assets, with Treasury yields remaining elevated and supportive of the dollar. With a win by former U.S. President Donald Trump in November's Election seen as increasingly likely, investors are considering what the market impact could be. Experts say more fiscal stimulus and trade tariffs are inflationary and could put upside pressure on longer-term bond yields.
• In European markets, Tuesday's focus for many investors will also be on France, as they wait to see if the opponents of the country’s far right can build a united front to hinder its path to victory. The euro, which tumbled after French President Emannuel Macron’s surprise election announcement, briefly touched the strongest level against the dollar in more than two weeks at the start of this week.