Last week the World’s smallest stock exchange opened in Cambodia joining a growing group of small exchanges in the developing World.
In places like Laos, Mozambique, and Cameroon, only a few companies are listed, but these exchanges hold the biggest potential for trading in and bidding on the future.
The markets these exchanges serve effect the lives and the livelihoods of thousands of people in many ways including; health care, education, and other social values will be lifted as the developing economies grow.
China and India are the countries most people think of in terms of economic growth and power. Africa and Southeast Asia must also be considered, and Ibelieve Africa’s growth potential could exceed the average percentage growth predicted for the BRICS countries: Brazil, Russia, India, China and South Aftica.
Africa holds a huge amount of the World’s natural resources; 13% of the World’s Crude Oil reserves, 50% of proven Gold reserves, 50% of Iron Ore reserves, 60% of Cobalt, and 90% of the Platinum Group reserves, according to the published reports.
And as population growth strains our Planet’s natural supplies of commodities, Africa and other natural resource rich areas will be able to cash in and raise the standards of living of their people.
Southeast Asia has Rubber, Timber, Palm Oil, Coal, Crude Oil, Agri Products, Bamboo, and many more products to offer the Global economy
China has shown its appetite for commodities, and land in Africa, as well as in Southeast Asia. So, it follows to bet on the seller and perhaps ignore the buyer.
Now it is not possible to invest with any of the companies listed on the Cambodian stock exchange because there are no companies listed on the Cambodian stock exchange.
And in Laos, players have a choice of 2 listings from which to choose: a bank and an electric company.
Fact, among the World’s 12 smallest exchanges, the most any 1 market trades in are 20 companies, and that is in Syria.
The World’s smallest exchanges are, in order of increasing size: Cambodia, Mozambique, Laos, Cameroon, Maldives, Cape Verde, Swaziland, Namibia, Libya, Armenia, Tanzania, and Syria.
There combined market capitalization is far less than 1% of the NYSE.
On a percentage basis bet these markets will beat out anything the developed World has to offer.
In fact, in the1st days after opening, the Laos exchange issues rose more than 80%. It fell after, and remains volatile, such action is expected in startups, and it will be a while before they are grown and tamed.
I have been reading about Mongolia recently. It is a “seller” to the World because it has huge natural resources.
Its stock exchange is gaining the attention of bankers from London to Hong Kong, and many see it as a rich place to play.
This year it linked with the LSE, that will oversee its privatization and operations.
A major UK newspaper cristened Mongolia “Boomtown” because it is the hottest destinations for resource investments today.
All of that said, the World’s smallest stock exchange in Cambodia may not have anything to trade just yet, it is worth keeping alert for listings. For it is an investment market where it is safe to say the only way thin that things will go is up. Stay tuned…
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster’s Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.