Author: TRY Taihy
Posted on 03-Mar-2018
Currently, the Cambodia stock market is moving gradually with few listed companies and low trading volume. Factors that have caused such an inactive stock market in Cambodia may be due to the following factors:
1. Companies are awaiting the market to have more investors before deciding to enter the market, as they can rise more capital with higher price per share if the market has more investors. On the other hand, most companies are not yet prepared to go listing on the stock exchange. To get listed, the company must have a financial statement audited follow the CIFRS standard.
2. The number of active investors is still not much because the public is still lacking the stock investment knowledge and confidence in the market. With the few number of listed companies, investors find it difficult to make investment decision.
Five years ahead, will Cambodia's stock market be likely to grow?
In the next five years, some medium and large enterprises will be ready to go public to gain competitiveness ability and develop themselves with non-debt capital and risk sharing. The CSX will also allow foreign listed companies to get listed (Dual Listing) or investors who can invest foreign listed stock directly through the CSX or Brokers. Trading on the CSX will be easier with the Mobile Trading System and additional trading in the afternoon. In the next five years, the other investment vehicles might not be as much popular as today. Return of real estate investment will not be as good as it was today or the last several years, and the interest rates at banks will probably drop to 3 or 4 percent per annual. Therefore, stock market will be a very popular investment target.
Institutional investors and foreign investors will also be a driving factor to the growth of the stock market as they will invest in huge amounts of money when the infrastructure is complete.
Investment with fund companies will also be a good option for investors and help the market grow steadily.
The Cambodia stock market will become a popular investment target in the next few years, but the public should pay attentions to the market from NOW. Investing with low capital can provide you experiences and investment strategies with the risk minimization. Starting the investment in the booming market will face you a very high risk.
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