Cambodia's best securities house 2020
Cambodia, one of the quietest stock markets in Asia, had two new listings this year and a new player in secondary trading: Acleda Securities.
In May, Acleda Bank broke a three-year-long IPO drought with a CR70.3 billion ($17.1 million) listing, becoming the first commercial bank in the country to go public. The Cambodian arm of Malaysian electric power technology company Pestech followed in August, floating for about $3 million.
Following these two IPOs, the Cambodia Securities Exchange has 13 listed securities – seven stocks and six bonds. The CSX was established a decade ago and hosted its first listing in 2011. It has developed at an excruciatingly slow pace, adding a new security every year or so. However, over the past year the bourse added Pestech, Acleda Bank and its first corporate bond from ABA Bank.
The potential for growth in Cambodia’s market is becoming more evident and Acleda Securities, under the watch of president and chief executive Prom Visoth, is ready to take advantage of the increase in business. The brokerage’s share of trading volumes in the first half of 2019 mostly trailed its competitors, a slip from the latter half of 2018, when it jostled for the top spot some months.
But Acleda has since become the firm to beat in the market, topping the league tables for the securities trading business by volume and value for nine out of the 12 months to June 2020.
In the third and fourth quarters of 2019, Acleda accounted for roughly 40% to 50% of monthly trading, according to data from the CSX. In early 2020, there was a lull in the secondary market, with less than $1 million in securities changing hands each month. But business surged at the end of the first half, with Acleda handling CR40.3 billion ($9.8 million) of trades in May, representing 52% of the total volume for the month, and CR65.4 billion in June, equal to 91% of trading.
Acleda Securities also introduced its own mobile trading app, ToanChet, in February. It can be used by its customers as well as account holders at Acleda Bank and any other bank that uses its parent for cash settlement. By launching ToanChet, Acleda not only increased its share of the market but boosted overall trading volumes on the exchange.
The CSX awarded Acleda Securities the title of best broker in the second quarter this year, for the third consecutive quarter. For its huge turnaround in the trading business and for bringing new investors to the stock market, Asiamoney will add its award for best securities house.