Cambodia Is One of Nations to Receive Positive Returns
AKP Phnom Penh, January 11, 2019 —
Asia Frontier Capital Ltd. (AFC), a Hong Kong-based financial corp., has affirmed that Cambodia is one of the nations that had positive returns for the month.
According its press release, in contrast to most of 2018, this month’s market weakness was led by the U.S., which saw a massive correction with the Dow Jones Index at one point being down −15% for the month. However, frontier markets in general and each of our three AFC funds fared comparatively better.
This month’s market movements were a clear example of the low correlations between developed markets and Asian frontier markets as some countries within our universe like Bangladesh, Cambodia, Iraq and Mongolia had positive returns for the month, it underlined.
The best performing indexes in the AAFF (AFC Asia Frontier Fund) universe in December were Cambodia (+21%), with a year to date performance of +39.6% and probably the second-best performing stock market in the world behind Ukraine with +80% in US$, Kyrgyzstan (+10.1%) – with +36.7% in US$ the third best performing stock market in 2018 globally, and Mongolia (+10%). The poorest performing markets were Pakistan (−9.0%) and Vietnam (−3.7%), said the same source, adding that the top-performing portfolio stocks this month were an IT company from Mongolia (+35.8%), a Vietnamese insurance company (+34.4%), a Mongolian trading company (+27.6%), an airport operator from Kyrgyzstan (+24.4%), and a cement company from Mongolia (+23%), it underlined.
AFC also exited one port operator and one company in Cambodia, pointed out the press release.
AFC is a pioneering fund management company specialising in investing in high growth Asian frontier economies by managing the AFC Asia Frontier Fund, AFC Iraq Fund and the AFC Vietnam Fund.
The AFC Asia Frontier Fund invests in public equities of Asian frontier countries that are seeing increasing consumption due to favorable demographic trends, rising incomes and high GDP growth. The fund invests in listed equities of companies that have their principal business activities in Bangladesh, Bhutan, Cambodia, Iraq, Kazakhstan, Kyrgyzstan, Laos, Maldives, Mongolia, Myanmar (Burma), Nepal, Pakistan, Papua New Guinea, Sri Lanka, Uzbekistan, and Vietnam.
By Heng Panha