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26/01: Daily updates of the Lao Securities Exchange
The index is expanding at a galloping speed of roughly 25% per week, supported by the propelling stock prices of BCEL and EDL-Gen. The LSX index advances 66.19 points, topping the 1,459 mark by the end of the day. The transaction volume improved slightly as investors actively engaged in BCEL shares. The total market turnover brushed over 4.03 billion Kip, the third highest figure since the opening of the Lao stock market.
1. Executive Summary
- The Lao Security Exchange: The Lao bullish market witnesses another day of relentless trading. BCEL shares pierce through the yesterday record, landing on the 13,300 Kip per share. At the same time, EDL-Gen also stretches almost as far as the maximum limits and peaks at 7,000 Kip per share, equivalent to a 300 Kip gain from yesterday. Almost 2.6 million shares worth of pending buy orders waited to be matched; only 390,930 shares were traded this morning.
- Tax breaks, stimulation to the Lao stock market: Laos is currently upholding two concurrent profit tax rates, a 35% tax rate for domestic entities and 20% for foreign corporations. The government is going to merge these two profit tax rates into a unified profit tax rate, ranging from 20% and 35%. The profit tax reduction would benefit both the shareholders in listed public companies and the government, as corporations will have more incentives for transpa-rency in operations and tax obligations. Vientiane Times.
- Lao auditing firms urged to raise standards: Lao auditing firms have not yet acquired the sufficient services to be hired by companies listed on the Lao Securities Exchange. Concerning with the transparency in the operations of listed companies, the Lao stock market is currently accepting the work of a few auditing companies, including KPMG and PricewaterhouseCoopers. The LSX Chairman and CEO, Mr Dethphouvang Mounlarat said the market is preparing to accredit more international auditing companies in the near future. Vientiane Times.
2. Exchange Rate
3. The Lao Securities Exchanges
The Lao stock market: 1,525.92, + 4.53%
BCEL is obviously receiving more liquidity than EDL-Gen as local investors could not resist the imminent gains; while foreigners still favor EDL-Gen for its considerable profits and long-term values. Investors are getting more impatient as they wait anxiously to purchase some EDL-Gen shares, and portions of those pending capitals have been observed on the other side of the stock board. BCEL is confident to set a growth target of 18% this year; the public will definitely feel more comfortable about their investments in this bank.
The LSX Index
The LSX index maintains it courses and crosses the 1,525 mark, 4.35% well up from the yesterday index. If market retains its radiating momentum, the index will be approaching 1,700 as early as next Monday. The amount of trades enlarged 7% by the end of the day, resulting in a market turnover of 4,339,734,000 Kip.
* Market Date:
1. LSX Index
2. EDL-Gen
3. BCEL
Lanexang Securities
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