21 June 2024 - Market Update - B2B Cambodia

This is a B2B Cambodia Market Update for 21 June 2024, reviewing the Cambodia Securities Exchange (CSX) and global markets.

Watch the video in English above.

• The Cambodia Securities Index continued its winning streak for the 3rd straight day, rising 1.40 points to 409.68 on very light volume on the Main Board of just 98,948 shares.  
• Total value traded on the Main Board was KHR 593,400,030 or USD 140,000. 
• Sihanoukville Autonomous Port was today’s percentage gainer, rising 240 Riel, or 2 per cent, to 12,320 Riel per share on very light volume of 5,497 shares traded. 
• Volume leader ACLEDA Bank Plc rose 40 Riel  to 7,580 Riel per share on volume of 48, 097 shares traded.  The only stock in negative territory was the Phnom Penh Water Authority which fell 20 Riel to 6.980.  The stock is not been under 7,000 Riel per share for the first time since January 2022.
   
• In company news, Sihanoukville Autonomous Port announced its annual cash dividend of KHR 77.73 per share for its Class “B” shares and KHR 504 per share for its Class “C” share  Shareholders of record on July 5th will be paid the dividend on July 16th.  The company disclosed the total dividend payout ratio was 12.96 per cent.
   
• In Business news, the Royal Government of Cambodia is offering tax incentives for micro, small and medium-sized enterprises operating in the informal economy in order to encourage proper registration of their businesses with the Ministry of Commerce (MoC) and the General Department of Taxation (GDT) and for prompt unregistered businesses to join the formal economy.  Sub-Decree No. 113, enacted May 21 seeks to ease requirements of compliance for currently informal businesses nationwide, and ultimately initiate a consolidation of all informal enterprises into the legal economy in coming years.
• Micro, small and medium-sized enterprises that voluntarily register for in the prescribed timeframes will be exempt from most penalties, fees and tax obligations for extended periods.  The tax incentives apply to business categories including wholesale, retail, repair, accommodation, food and beverage services, crafts and agriculture.
• Tax incentives for those who voluntarily register are as follows: 
  • Micro-enterprises that have voluntarily registered for tax between 2023 and 2028 will be exempted from tax registration fees and information update fees.  Micro-sized enterprises will also be exempt from income tax and minimum taxes for two years after their initial formal registration.
  • Small enterprises that voluntarily register for tax between 2023 and 2028, will be exempt from penalties and tax liabilities for non-compliance prior to registration and exempt from any tax registration fees and update fees.
  • Medium-sized enterprises that voluntarily register for tax between 2024 and 2025 are exempted from penalties and tax liabilities for non-compliance prior to formal registration and will also benefit from exemption from income tax and minimum taxes for two years after their registration is lodged with the MoC and GDT, if register during the prescribed timeframe.
  • Small and medium-sized enterprises which voluntarily register for tax in 2024 or 2025 are also exempt from paying patent tax for two years after formal registration.
• The sub-decree stipulates that all such enterprises are still required to maintain full accounting records and submit tax returns as mandated by generally applicable tax laws and regulations.
   
• The National Bank of Cambodia reported that Foreign Direct Investment or FDI rose 7.9 per cent in 2023 to KHR 197.8 trillon.  China again took the top spot, representing 45.6 per cent of all FDI.  South Korea was in 2nd place with 11.8 per cent, followed by Singapore with  6.5 per cent, Japan with 6.2 per cent, and Vietnam with 5.3 per cent.  Financial Activities represented 23.3 per cent of the FDI invested, followed by Manufacturing at 22.3 per cent and Real Estate at 11.2 per cent.
   
• The Khmer Riel remains weak at 4,121 to the USD on a an increasing strong USD Index at 105.78 as of Cambodia close of Business,
• Brent Crude flat at USD 85.67 a barrel, pausing from a strong run since June 3rd.  
• Gold up USD 7.40 to USD 2,445 an ounce.
• Overnight the DOW Jones was up 299.90 to 39,134.76. Nividia was in the news. The megacap chip designer’s stock shed 3.5 per cent Thursday, relinquishing its title of largest company by market cap. The chip designer and artificial-intelligence darling topped $140 Thursday morning. The Dow futures are down 53 points indicating a softer New York open.

Watch the 21 June 2024 market update in Khmer below: