The Cambodia Securities Exchange (CSX) yesterday saw the largest trade volume in its short history with nearly 10 million shares exchanged.
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The total value of traded shares surpassed $30 million, the highest ever at the Cambodian stock exchange, CSX said.
“Today’s trade was mainly composed of stocks of Sihanoukville Autonomous Port (PAS), with total trade value reaching 120.02 billion riel.
“Of this, only 0.02 billion riel was traded through the Auction Trading Method (ATM). The rest was traded using the Negotiated Trading Method (NTM),” CSX said.
The NTM trade, facilitated by stockbroker SBI Royal Securities, was the biggest on record, it said.
“This was the second time trade is conducted through NTM in 2019, but it was the fourth since the method appeared in the local market in early 2018,” CSX said.
Kim Sophanita, director of CSX’s market operations department, explained the difference between ATM and NTM.
“If a buyer wants to buy or sell stock but there is no counterparty, they normally need to place the order at the market. This is done through the Auction Trading Method or ATM.
“However, say one wants to buy or sell a large amount, say millions of shares. To increase the likelihood of the purchase happening, they need to find major shareholders and negotiate the deal. Usually, a broker can help.”
“In this case, if you cannot find the counterparty, you can trade the shares at CSX using the Negotiated Trading Method or NTM,” she said.
She said large transactions are done by institutional investors who decide to buy a big portion of a company believing it has long-term growth potential.
Ms Sophanita noted that most buyers of PAS shares yesterday were from Japan.
“All we can say is that most buyers were Japanese institutional investors,” she said.
Chhay Lyhour, head of securities at SBI Royal, said, “This is the second time SAP uses the Negotiated Trading Method to sell a big amount of shares. Buyers were institutional investors.”
According to CSX, the first deal done through NTM this year saw the exchange of 6 billion riel ($1.5 million) worth of Phnom Penh Special Economic Zone’s (PPSP) shares in March.
In 2018, there were two NTM deals. One saw the sale of PPAP shares (380 million riel or $95,000), while the other saw the exchange of PAS stock (17 billion riel or $4,250).