30 October 2024 - Market Update - B2B Cambodia

This is a B2B Cambodia Market Update for 30 October 2024, reviewing the Cambodia Securities Exchange (CSX) and global markets.

Watch the video in English above.

• The Cambodia Securities Exchange Index was up 0.68 points​ or 0.17% to 404.92. 
• Total trade volume was down from Monday, with 88,973 shares changing hands at a total value of 572.3 million riel, or approximately $141,160 US dollars.
• On the main board, only three stocks were up. Leading the market was the Sihanoukville Autonomous Port, which was up 0.89% or 100 riel to 11,380 riel per share, followed by MJQ Education, which was up 0.49% or 10 riel to 2,050 riel per share. The third stock up was CAMGSM, which rose by 10 riel to 2,440 riel per share.
• On the other hand, the rest of the main board’s six stocks were down. Grand Twins International was the biggest loser of the day, down 0.47% or 20 riel to 4,260 riel per share, followed by Royal Group Phnom Penh SEZ, which was down 0.45% or 10 riel to 2,220 riel per share. 
• Other stocks down included Pestech Cambodia, Phnom Penh Water Supply Authority, ACLEDA Bank and the Phnom Penh Autonomous Port.
• Over on the growth board, DBD Engineering was up 0.49% or 10 riel to 2,050 riel per share, while JS Land again remained flat at 3,450 riel per share.
   
• ACLEDA Bank recorded the highest trade volume of the day, with 71,484 shares changing hands at a total value of 515 million riel or around $127,000 US dollars, making up roughly 78.6% of total shares traded on October 30th.
• CAMGSM recorded the second highest trade volume of the day, however, with a significant gap to the highest, with only 7,532 shares changing hands at a total value of 18.4 million riel, or roughly $4,550 US dollars, accounting for around 8.3% of Wednesday’s trade volume.
   
• In other market-related news, last week Confluences and YCP jointly-published a white paper on the declining profitability trend in Cambodia’s banks, looking at the impact of rising costs and non-performing loans. The overall decline in profitability is attributed to a number of factors, particularly brought on by the Covid-19 pandemic, both within Cambodia and across the globe, that caused a spike in provisions and non-performing loans.
• Non-performing loans in Cambodia have reached around 5 per cent, rising 3 percentage points from 2019, when it was around 2 per cent. This three point increase is significant to note, especially because economists predict this will not end at just 5 per cent but will rise even up to 7 to 8 per cent. 
• Addressing this issue, the report recommends, will require certain actions like restructuring loans to give more favourable terms for borrowers, so that borrowers can repay smaller amounts or at lower interest rates, so while banks continue to make losses, they can still recover some money. 
• Another way is to sell the non-performing loans, a method more commonly observed in developed markets but not in Cambodia. For the full report insights, stay tuned for our written coverage.
   
• Exchange rate, the KHR to USD was stable at 4,061 riel per USD, while the USD index was up to 104.14.
   
• Oil prices held at one-month lows, after sliding in the previous two sessions, as markets weighed a potential ceasefire between Israel and Hezbollah and rising OPEC+ crude supplies against a possible drop in U.S. fuel stocks and demand concerns.
• Brent crude futures gained 58 cents, or 0.8%, to $71.7 US dollars a barrel.
• Gold hit a lifetime high on Wednesday on safe-haven demand ahead of the U.S. presidential election, while investor focus is also on U.S. economic data for clues on the rate cut outlook.
• Spot gold was up 0.3% to $2,783.38 US dollars per ounce, after hitting an all-time high of $2,789.73 US dollars earlier in the session. 
• U.S. gold futures rose 0.5% to $2,795.90 US dollars.
• U.S. stock index futures rose on Wednesday, as Alphabet's strong quarterly results buoyed sentiment around technology megacaps, while investors also awaited crucial data to gauge the strength of the economy and the labour market.
   
• Shares of Alphabet, the first of the five "Magnificent Seven" megacap stocks due to report results this week, leapt 5.5% in premarket trading after the company beat expectations for third-quarter revenue and profit on strength in its cloud business and YouTube ad sales.
• As of the time of the Cambodian market’s closing, S&P 500 futures were up 0.19%, Nasdaq 100 futures were up 0.19%, while Dow Jones Industrial Average futures gained 0.05%.

Watch the 30 October 2024 market update in Khmer below: