With the cooperation of Phnom Penh Water Supply Authority (PPWSA) as a success model, Cambodia Securities Exchange (CSX) expects to hit $100 million in stock prices daily by 2030.
At the Listed Company Forum on April 28, Hong Sok Hour, Royal Government Delegate in Charge as Chief Executive Officer of CSX, said that PPWSA has to date received the greatest attention from investors. It has remained stable since 2017, even though it is not the first company with the most traded shares.
“Even its stock prices vary, but they tend to rise every day. Also, we can see that the water supply authority remains good for long-term investment since share prices are still affordable,” he said. “So, when foreign investment from the outside increases, we expect that our investors will benefit.”
This year has already attracted new companies to register with CSX, including Mengly J. Quach Education and telco firm CAMGSM Plc, which owns Cellcard, and more will register with CSX, he added.
Hong said that this is an opportunity for investors to explore as an additional source of income. Even if they do not have huge amounts of money to invest, they can start small and see what they can gain, he added.
“We will show the public that investors in the stock sector will benefit more,” he said. “However, at this time, I think it is better than the real estate sector, which will face challenges in the near future.”
In 2012, the government chose to use PPWSA as a case study to highlight the benefits of the stock market and help gain public trust. He noticed that its data had increased after registering.
Long Naro, director at PPWSA, said that the authority was chosen as the first company to enter the Cambodian stock market since it was amended and gained certain transparency.
"Besides the previous seniors' tenacity, we have attempted to promote the stock with our partners in order to increase and find investment in order to develop our infrastructure and economy,” he said. “We make every effort to spread this information."
Aside from that, the water supply authority also promotes innovation and how to conduct business with clean water, as it wants people to believe in its operations.
"We want them to be confident in our service and purchase stocks. It is really important in gaining people's trust,” he said. “When there is belief, I believe that stock prices will rise, especially with the promotion of the water supply authority's innovation."
With PPWSA’s strategy from 2023-2030, he believes people who purchase stocks will gain benefits. In addition, with his team's efforts and government support, the water supply authority can demonstrate to the public that it can be trusted.
Currently, there are nine companies listed in shares and nine companies listed in bonds, with a total investment of $317 million. In addition, the CSX expects to have about seven additional companies by the end of 2023.