Sell-off causes end to local bourse bull run

The Cambodia Securities Exchange recorded it’s highest ever figure of 826.55 points.  KT/Chor Sokunthea

The drop was attributed to a fall in ACLEDA Bank shares (ABC) – the biggest market capitalisation currently listed on the stock market. As investors cashed in on recent gains made after the banks initial public offering last week.

With ABC shares closing at 21,700 riels, dropping 900 riels, from its all-time high of 22,600 riels. ABC’s trading value was 5.9 billion riels ($1.48 million) yesterday, compared with 18.21 billion riels ($4.6 million) on Friday last week.

Ha Jong Weon, vice-chairman and chief operating officer of Cambodia, said

that the price of ABC rose day-by-day last week because investors found ABC as a new investment opportunity and they gave a high confidence to the growth of the bank.

On the other hand, some investors in the stock market find the stock as a speculative opportunity – therefore, this was also a reason for the price increase. “The trading value of more than $7 million last week of ABC shows that the market is big enough for newly listed companies to raise find in our Cambodia securities market. Moreover, we are having much better liquidity in the secondary market,” Jong Weon said.

“I think the price of ABC fluctuated because some investors thought the price could go up and others thought could think it was high enough.”

Mar Amara, executive vice-president and group chief financial officer at ACLEDA Bank, said the bank’s stock price had increased remarkably from its IPO 16,200 riels to more than 20,000 riels.

This situation has reflected the trust of the investors and Cambodian people in the bank. She added that the bank is transparent, and fully compliant with both national and international regulations and law. Plus, ACLEDA Bank has a lot of customers, and is the biggest commercial bank in Cambodia in terms of branches, ATMs, assets, and loan and deposit portfolios.

“Through the participation of ACLEDA Bank in the Cambodia Securities Exchange, we saw the market increase remarkably in terms of trading volume and shares. Therefore, the CSX will be active and continue progress.” Source from Khmertimes.