|
Laos not ready to offer online share trading
Online trading of stocks listed on the Lao Securities Exchange is not yet available due to concerns over the security of IT services.
The two securities firms offering brokering services for trading on the LSX, BCEL-KT and Lane Xang, do not have adequate IT infrastructure in place to provide secure share trading and therefore are unable to offer online trading services, which are typically used in most other countries.
At present, people wishing to buy or sell stocks on the LSX have to travel to the securities companies located at the LXS building to complete an application form to make a transaction; while more experienced traders can make trades via facsimile or telephone.
BCEL-KT Securities Company Deputy Director Mr Hinphet Chanthalangsy admitted yesterday that the securities companies need improved IT infrastructure before they can provide online trading services. He said that the securities firms would not invest large amounts of money to develop IT infrastructure for stock trading purposes at present as demand for share trading services is still low.
“If we invest in development of the IT system, we will have to charge customers higher service fees to cover our investment costs,” he said, adding that he believes that many investors would be unwilling to pay higher service fees.
Mr Hinphet said it would be sometime before the brokers can provide online trading services, which are more convenient for investors.
LSX Chairman and CEO Mr Dethphouvang Moularat said yesterday that the lack of online trading services was not a problem of the LSX, but rather an issue between brokers and investors.
He said that brokers and investors must improve their communication channels so they can do business together.
Mr Dethphouvang said communication channels between brokers and the securities market have been developed and are sufficient to provide trading services.
“We have 100 terminals and can accommodate 100,000 orders per second,” he told Vientiane Times yesterday.
An Australian share market expert, Dr Darell Walker, said that buying and selling of stocks listed on the LSX would remain quiet in the short-term as most Lao investors have no experience in trading, adding that many countries, including Vietnam, faced a similar situation when they opened their inaugural stock markets.
Many Lao businesspeople have said they would prefer to take the time to learn about the stock market before making a decision to invest.
“I don't want to risk an investment because I have no knowledge about it,” said a real estate agent, adding he would like the involved sectors to provide more information for potential investors.
Officials have said Laos needs to formulate a number of laws, such as anti-cyber crime laws, before online trading services can be offered.
Vientiane Times
|
