Kingdom’s stock market investors double in second half of this year
Nissan slow adoption of reforms is highlighted
THE Kingdom’s sole stock market saw its investors double in the second half of this year compared to the first half, said a Cambodia Securities Exchange (CSX) press release on Tuesday.
It said the numbers of investors reached 20,425, doubling from the beginning of the second half of this year, while national investors increased to 17,289 – a rise of 150 per cent.
International investors reached 3,136 – increasing only 6.37 per cent compared to the same period in the first half of the year.
Optimistic outlook
The release said t he increase is due to a more optimistic outlook of t he stock market, particularly t his year.
“This is because people started to feel optimistic about the market, having previously seen ongoing market development,” it said.
The market will be more attractive with various upcoming products and completed infrastructure.
“With more than six years of market development, the market has reached a new era with remarkable results. With the variety of products in the market, investors may also find the stock market a better investment opportunity because it is a good choice to diversify their investment portfolio,” the release said.
Another factor boosting the market’s growth is the Kingdom’s macro-economy, which is set to see an annual seven per cent increase.
The CSX said the huge increase in the number of investors drives the liquidit y of the market and looks attractive to new investors.
“A good future perspective and opportunities are also along the way. With the upcoming listed stocks and bonds, trading will be more active and this will attract more companies to go public.” WITH Nissan Motor Co being charged on Monday with falsifying securities reports, the automaker’s slowness to implement corporate governance reforms has once again come to the fore.
Though Nissan aims to accelerate drastic across-the-board managerial reforms, including the establishment of a “remuneration committee” comprising external directors to decide board members’ pay, the firm is expected to face an uphill battle.
Responding to the charges against Nissan, president and CEO Hiroto Saikawa told reporters on Monday night: “We have taken action because we are determined to fulfil our responsibility as a corporation to disclose [executives’ remuneration].”
“We must take prompt measures to tackle the urgent task of [reforming management],” he said.
Several Nissan executives said promotion, demotion and executive remuneration were entirely decided by former Nissan chairman Carlos Ghosn.
“You risk your future if you rebel against Ghosn,” some employees have said of the mood that took hold at the company, causing deliberations at board of directors’ meetings to lose substance.
In 1999, Ghosn was sent from France’s Renault SA to financially troubled Nissan. He became the “saviour of Nissan,” and consequently too much power was concentrated in his hands.
In recent years, Ghosn had decided board members’ compensation in consultation with Saikawa and then representative director Greg Kelly, an aide to Ghosn. However, in reality, Ghosn had the final say on compensation.
Nissan is said to lag behind other global companies in terms of establishing strong corporate governance.
The Corporate Governance Code, a set of guidelines for the conduct of listed companies drawn up in 2015, urges firms to separate “business execution” and “oversight of management”.
The guidelines also state that companies should appoint at least two independent external directors.
According to the Tokyo Stock Exchange, about 85 per cent of 2,540 companies listed on the First and Second Sections on the TSE met the requirement as of July last year, but Nissan had appointed only one independent director as of June.