ACLEDA’s role in capital market growth ‘remarkable’

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SERC chief Sou Socheat (third left) and ACLEDA president In Channy (third right) at the training course on August 16. ACLEDA

ACLEDA Bank Plc and its subsidiaries have been playing a critical role in contributing to the development of the capital market in Cambodia, said Securities and Exchange Regulator of Cambodia (SERC) director-general Sou Socheat.

“ACLEDA Bank and its subsidiaries have been actively involved in the development of the securities market since the beginning of the Cambodian securities market.

 

“The bank has been recognised as a cash settlement agent related to securities, securities listing agent and a settlement agent, and now a custodian agent in the securities sector,” he added.

Speaking at an August 16 training course on investors and creating awareness in the securities sector for the management and staff of ACLEDA, Socheat reminded that the bank went public in the midst of Covid-19 in 2020.

To date, the stock market is still showing positive growth and development, he said, adding that through ACLEDA, the market has grown significantly in terms of investor growth, size and trading value and market capitalisation.

ACLEDA Securities Plc, a subsidiary of the bank, has been licensed and recognised as a securities broker, securities distributor and a bondholder representative.

“Looking at the business model, the bank has established a service chain that is actively involved in the Cambodian securities sector. It is competitive and has raised the confidence of investors in the securities market,” he said.

In Channy, president and group managing director of ACLEDA, said the bank has seen sustainable growth, thanks to a strong workforce which is responsible for performing their work in accordance with the law, principles, and professional ethics.

 

“As we all know, ACLEDA has grown remarkably as shown in our recent report. The bank achieved better results in the first half of this year.

“The issuance of listed company reports to the public is really important. It is used as a fundamental element for investors to decide on which stock to invest in,” he said.

The analysis of reports should be carefully and comprehensively displayed so that investors have confidence in their investments.

“Therefore, I would like to highly stress the importance of this training for investors, especially trainees in building the capacity of their investment,” Channy added.

Up to now, there are nine companies listed on Cambodia Securities Exchange (CSX), seven of which are on the Main Board and two on the Growth Board. Seven companies have issued corporate bonds on CSX.

SERC’s Socheat said as of the second quarter of 2022, a total of 32,374 investor IDs were issued, of which 99.52 per cent were individual investors and 86.12 per cent were Cambodian investors.

The total market capitalisation stood at $1.86 billion, while the average stock trading volume in the second quarter of 2022 was 494,988 shares (with an average value of about $1.28 million a day).

“The securities market is evolving positively, with our market having adequate support or pillar system [investors, IPO companies, marketing intermediaries and market infrastructure] and full support and participation from all stakeholders in this area,” Socheat said.