25 July 2024 - Market Update - B2B Cambodia

This is a B2B Cambodia Market Update for 25 July 2024, reviewing the Cambodia Securities Exchange (CSX) and global markets.

Watch the video in English above.

• The Cambodia Securities Exchange Index was slightly up by 0.34 points or 0.08% to 415.70.
• Total trade volume was up but still light. Only 67,569 shares changed hands at a total value of roughly 393 million Khmer riel or around $95,750 US dollars.
• Three stocks were up on the main board. Grand Twins International led the market today, up 2.66% or 90 riel to 3,470 riel per share, followed by ACLEDA bank and Sihanoukville Autonomous Port, each gaining 20 riel to 7,540 riel per share and 12,140 riel per share respectively. 
• On the downside, Pestech Cambodia Plc was the biggest loser of the day, down 0.79% or 20 riel to 2,500​ riel per share. Royal Group Phnom Penh SEZ followed, down 0.44% or 10 riel to 2,260 riel per share. Phnom Penh Autonomous Port and Phnom Penh Water Supply Authority were also down 0.26% and 0.28% respectively. 
• Meanwhile, MJQ Education, and CAMGSM remained flat for a second day in a row.
• Over on the growth board, DBD Engineering was down 0.48% or 10 riel to 2,090 riel per share, and JS Land remained flat at 3,500 riel per share. 
   
• ACLEDA Bank continued to record the highest trade volume of the day with 26,237 shares changing hands at a total value of roughly 197 million riel  or $47,900  US dollars, making up around 38% of all shares traded on July 25th. Grand Twins International was the second highest traded stock of the day with 15,271 shares changing hands, accounting for roughly 22% of Thursday’s trade volume. 
   
• In other market news, the Phnom Penh Water Supply Authority and the Ministry of Economy and Finance have entered into a Subsidiary Credit Agreement for debt financing, amounting to a total credit of 200 million Euros or $217 million US dollars, funded by the French Development Agency. This loan will be used to fulfil a need for clean water in Phnom Penh and Takhmao city by increasing the production capacity of the Bakheng Water Treatment Plant, adding the production capacity for another 195,000 cubic metres of water per day to the existing production capacity of 390,000 cubic metres of water day. This production capacity is in line with Phases 1 and 2 of the Bakheng Water Treatment Plant.
• It should be noted that the Phase 1 and 2 of the Bakheng Water Treatment Plant of the Phnom Penh Water Supply Authority, from 2019 to 2023, was financed through two loans worth a total of $186.4 million US dollars from the French Development Agency, a $100 million dollar loan from the European Investment Bank, a grant worth up to $15 million dollars from the European Union, and direct investment by the Phnom Penh Water Supply Authority worth $80 million dollars.
• DBD Engineering also recently took a loan of $1 million dollars from its Chairman and Managing Director, Neang Vithy, with the company’s disclosure notice citing that this loan will be used for funding new construction projects and operating expenses of the company. The loan has a two-year borrowing term with a maturity date in July 2026.
   
• The Khmer riel to USD slightly strengthened to 4,107 riel per US dollar, while the US dollar index was down to 104.17.
   
• Moving on to global commodities, oil prices slipped on Thursday as lacklustre Chinese consumption signalled weaker demand from the world's biggest crude importer, outweighing support from Wednesday's data showing large draws on U.S. oil inventories.
• Brent crude futures for September fell 91 cents, or 1.1%, to $80.80 US dollars a barrel. The benchmark fell by more than $1 dollar per barrel during the session.
• Gold slid over 1%, falling to its lowest level in two weeks, as investors squared positions to focus on U.S. economic data that could offer additional insights into the timing of the US Federal Reserve's potential interest rate cuts.
• Spot gold fell 1.2% to $2,369.29 US dollars per ounce, having touched its lowest since July 10. U.S. gold futures dropped 1.9% to $2,368.80 US dollars.
   
• According to Reuters, analysts have stated that market participants appear to be shifting from gold to other areas, much like the pivot being seen in the stock market from tech giants to smaller names, while profit-taking may also be playing a role.
• Stock markets were locked in a multi-trillion-dollar tailspin on Thursday due to a slump in global tech stocks. The markets are awaiting the personal consumption expenditure data on Friday to calibrate their expectations of the timing of rate cuts by the U.S. Federal Reserve.
• The S&P 500 rose 0.4% as Wall Street attempted to recover from the index's worst session since 2022. The Nasdaq Composite added 0.1%. The Dow Jones Industrial Average jumped 300 points, or 0.7%, led to the upside by a 4% jump in IBM.

Watch the 25 July 2024 market update in Khmer below: