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Foreign investors in local stock market rising

May Kunmakara / Khmer Times Share:
There are now five companies listed with CSX. KT/Chor Sokunthea

The number of foreign nationals investing in the Cambodia Securities Exchange (CSX) increased significantly last year, with Chinese and Japanese investors leading the hike, according to the latest CSX report.

Last year, more than 20,000 investors traded on CSX. Of those, 3,090 were foreigners, an increase of nearly 19.5 percent year-on-year.

“These are very good results compared to 2017, when the increase in foreign investors was just 7.44 percent.

“Among the three thousand plus foreign investors, Chinese were still the largest group, although the biggest increase belongs to the Japanese. The number of Japanese people that traded at CSX grew by 23 percent last year.”

The report says that in 2018 the Japanese took the first spot when it comes to turnover. “More Japanese are opening accounts and are participating in trading. From being number four in terms of trading turnover in 2017, they jumped to the number one spot last year, with total turnover estimated at 3,073,656,060 riel ($768,414),” the report added.

“This shows that, with the local economy growing at around 7 percent a year, Japanese investors have found in Cambodia a new investment market.

“In the near future, the bourse’s infrastructure will be more developed with more products and choices. We are sure that the number of foreign investors in our market will continue to grow,” the report added.

Try Taihy, manager of CSX’s securities clearing and settlement department, told Khmer Times that investors are starting to pay attention to the Cambodian stock market because of the country’s stable economic situation.

“With return on investment in their home countries not being so high, investing in other countries like Cambodia seems like a good decision. As long as the real estate sector continues to thrive, CSX will remain a target for them,” he said.

Mr Taihy said the reason Chinese and Japanese nationals top the list of investors at CSX is that both countries have huge investments in the Kingdom.

“They are investing in the stock market because our stocks are very attractive, and they are optimistic about the future of the bourse,” he said, adding that most Chinese and Japanese investors are choosing to buy shares in Phnom Penh Water Supply Authority and Sihanouk Autonomous Port.

Mr Taihy said that the CSX index increased more than 40 percent year-on-year in 2018, and is now 70 percent higher than it was a year ago.

“If investors do their homework and study the market, they will make money in CSX. The return at the stock market is very attractive and investors can earn attractive dividends,” he added.

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