3 July 2024 - Market Update - B2B Cambodia

This is a B2B Cambodia Market Update for 3 July 2024, reviewing the Cambodia Securities Exchange (CSX) and global markets.

Watch the video in English above.

• The Cambodia Securities Exchange (CSX) Index was almost unchanged, up by only 0.02 points to 413.99 points.
• Total trade volume was slightly up, but still fairly light, with 116,838 shares changing hands at a total trade value of 666.5 million Khmer riel, or roughly $162,000 US dollars.
• On the main board, the Phnom Penh Autonomous Port led the market, up by 7.11% or 960 riel to 14,460 riel per share. Meanwhile, Royal Group Phnom Penh SEZ also saw a 1.35 per cent or 30 riel increase to 2,260 riel per share. Other stocks up were the Phnom Penh Water Supply Authority and the Sihanoukville Autonomous Port. 
• On the downside, we saw Grand Twins International fall 3 per cent or by 90 riel to 2,910 riel per share.
• CAMGSM was also down 0.41 per cent to 2,440 riel per share, and ACLEDA Bank was down 0.27 per cent to 7,500 riel per share.
• Pestech Cambodia and MJQ Education remained flat.
• Over on the growth board, JS Land was up once again, rising by 2.99 per cent or 110 riel to 3,790 riel per share. DBD Engineering, meanwhile, was down 0.96 per cent or 20 riel to 2,060 riel per share. 
• Royal Group Phnom Penh SEZ was the day’s trade volume leader, with 62,435 shares changing hands at the value of 142.9 million riel or $34,772 US dollars, equivalent to 30 per cent of all trades on June 3rd. ACLEDA Bank remained in second place with 39,468 shares traded, at a total value of 297.7 million riel or $72,400 US dollars, roughly 19 per cent of the market volume.
   
• In other national economic news, Cambodia’s macroeconomic performance appears to be on the mend with the country’s GDP growth on the recovery path, forecasted to maintain at 6 per cent in 2024, and at 6.5 per cent in the medium term from 2025-2027, according to statistics from the Ministry of Economy and Finance. A recent presentation delivered by the General Department of Policy specifically pointed to Manufacturing (including garments and non-garments), Tourism and service-related sectors, as well as Agriculture as three of the main growth driving sectors in the current Cambodian economy. Non-garment manufacturing appears to be maintaining good momentum supported by external demand together with the domestic supply industry, and the garment sector is forecast to rebound back in 2024 and the medium-term, under the expectation that global demand will recover. FDI inflows have also increased, especially in manufacturing, which is helping to facilitate economic diversification. Exports are expected to recover strongly supported by the recovery of the garment sector. Inflation in the country is also expected to converge to its historical average in the medium-term, on the back of the normalisation of global commodity prices. In 2024, the consumer price index inflation rate picked up to 2.7 per cent, but is predicted to normalise down to 2.5 per cent from 2025-2027. 
   
• The Khmer riel to USD weakened slightly to 4,113 riel per US dollar, while the US dollar index was slightly down to 105.64
• Moving on to global commodities, oil prices increased on Wednesday following a strong demand outlook in the world's largest oil consumer, the US, and continuing disputes in the Red Sea, which is one of the world's most frequently used shipping lanes for oil and fuel shipments.
• International benchmark Brent crude traded at $86.67 US dollars per barrel, up 0.49 per cent.
• Data released by the American Petroleum Institute (API) late on Tuesday showed a decrease of 9.16 million barrels in US crude oil inventories, against the market prediction of a draw of 400,000 barrels. Official statistics from the U.S. Energy Information Administration (EIA) will be released later in the day, and if a decrease in crude and gasoline stockpiles is confirmed, prices are expected to climb further.
• Moreover, in solidarity with Palestinians in Gaza, Yemen's Houthi group continues to target cargo ships in the Red Sea owned or operated by Israeli companies that are transporting goods to and from Israel. The group said Tuesday that it attacked a "vital target" in Haifa city in northern Israel with cruise missiles.
• Gold prices also strengthened on Wednesday, with Spot gold up by 0.7 per cent to $2,344.60 US dollars per ounce, and U.S. gold futures up 0.9 per cent to $2,354.20 US dollars. 
• According to experts, Wednesday’s price gains for gold are related to the softening of the U.S. dollar that came after the Chair of the U.S. Federal Reserve acknowledged in public that inflation in the U.S. is finally starting to move in the right direction.
• As of the time of the Cambodian market’s closing, U.S. Stock futures appeared to be rising early Wednesday after the Nasdaq and S&P 500 finished at record highs in the previous session.
• Stocks got a boost from companies with large market values, such as Tesla, which jumped 10 per cent on Tuesday, as well as from semiconductor makers.
• Futures tied to the S&P 500 inched up 0.03 per cent. Dow Jones Industrial Average futures were 0.1 per cent higher while Nasdaq 100 futures were marginally higher as well.

Watch the 3 July 2024 market update in Khmer below: