Logo of Phnom Penh Post newspaper Phnom Penh Post - CSX-listed firms urged to pay out dividends

CSX-listed firms urged to pay out dividends

CSX-listed firms urged to pay out dividends

Companies listed on the Cambodia Securities Exchange (CSX) should consider providing higher dividends to shareholders to boost trading activity in the Kingdom, experts at a gathering said on Wednesday.

Speaking at a forum for listed firms on the topic “Potential of Sustainable Growth”, SBI Royal Securities managing director Seng Chan Thoeun said there are several factors causing a lack of liquidity on the CSX. Cash dividends, he said, could attract more investors to the market.

While no exact rate was given, Thoeun said the dividend per share should be equal to or higher than interest rates for deposits at financial institutions. In the Kingdom interest rates for riel deposits currently stand at around seven per cent.

“Companies themselves can help to boost market liquidity. Give more returns [dividend] to others and investors will come,” he said.

There are currently five companies listed on the Kingdom’s fledgeling bourse. Two of them, Phnom Penh Autonomous Port (PPAP) and Sihanoukville Autonomous Port (PAS) have promised private shareholders a five per cent dividend annually for five years and three years respectively.

Attracting investors

Chey Sokunthea, marketing director of PAS, which paid out dividends of 7.9 per cent last year, said there is a positive relation between dividend sharing and stock price. She observed that when the company declared it would offer higher dividends, the stock price increased.

“When we get more profit, we will distribute dividends at a higher rate. We also want to attract investors.”

Ros Kimleang, deputy director general of Phnom Penh Water Supply Authority (PPWSA), agreed that offering higher dividends can help to attract investors.

However, he said his firm has some difficulties in offering such dividends. While PPWSA offered dividends of 3.99 per cent last year, Kimleang said it might not be a satisfying rate for some shareholders.

“The truth is that we need more money for infrastructure development, so we need to reserve funds from profits for our counterpart funds when we borrow money from development partners. This is the reason we have difficulties to paying higher dividends,” said Kimleang.

MOST VIEWED

  • ‘Pesticide-laden cucumbers’ kill two, poison 150 in Banteay Meanchey

    At least two youths have died and 243 others are being treated for vomiting, diarrhoea, breathing difficulties, dizziness and muscle weakness after they ate cucumbers suspected to consist of pesticides. The incident happened on Saturday, said Banteay Meanchey provincial police chief Ath Khem. He told The

  • Three dead, 13 injured in collapse at Siem Reap pagoda

    At least three people were killed and more than 10 others injured on Monday after a dining hall under construction collapsed at Prasat Kokchak pagoda in Kokchak commune, Siem Reap province. Provincial police chief Tith Narong said Military Police, soldiers and local volunteers had successfully recovered 16

  • China Unicom enters Cambodia

    China Unicom, the country’s largest telecoms operator, has expanded into Cambodia to build optical telecommunication pathways in the Kingdom as part of the Belt and Road Initiative (BRI). The Hong Kong-listed company officially opened its China Unicom (Cambodia) subsidiary on Monday to become the

  • PP-SHV Expressway on track for completion in early 2023

    The construction of the $1.9 billion Phnom Penh-Sihanoukville Expressway, which broke ground at the end of March, is on track to be completed by early 2023, Ministry of Public Works and Transport spokesman Vasim Sorya said on Monday. The 190km high-speed highway linking the capital to the

  • Dealer charged with artefact smuggling

    Antiquities dealer Douglas Latchford has been charged by the Southern District of New York with several counts of smuggling looted Cambodian artefacts. US attorney for the Southern District of New York Geoffey Berman and special agent in charge of the New York field office of

  • Kingdom’s domestic milk still cannot compete with imports

    Price competition and a lack of confidence by consumers are the main reasons the dairy market cannot compete with imports, said domestic milk producers. The large displays of imported fresh milk at the Kingdom’s supermarkets present a cumbersome obstacle for local producers, they said.