|
10/02: Daily updates of the Lao Securities Exchange
Many spectators seemed to enjoy the today show when the LSX benchmark green up its index after five consecutive downturns. In the first session, the index persisted its bearish run to 1,442.94 points as EDL continue to struggle; however, it reclaimed 54 points in the second session and closed at 1,496.89 points.
1. Executive Summary
- The Lao Securities Exchange: The Lao stock market has possibly reached a turning point today when both stocks have sprung free from the bottom. BCEL was able to even touch the ceiling price at one point, but it could not maintain the thrust and fell to 12,200 Kip per share, gaining 0.83% compared to yesterday. EDL-Gen gathered enough strength in the first session to push through its base price in the second, restoring the 7,200 Kip per share, which is equivalent to a 1.45 percent upswing. The total trading volume experienced some spiking sessions today when it surged almost 4 times the yesterday amount, resulting in an impressive market turnover of 13.4 billion Kip.
- Agriculture Promotion Bank will not be ready to become public company despite governmental encouragement: The bank needs a long term development strategy to be listed on the stock market. Moreover, another major problem is the ability to demonstrate transparent operations. The bank has signed an MOU with a Chinese company to establish a joint-venture securities company. In 2010, the bank generated revenues of more 300 billion kip while its expenditure was about 262 billion kip. The bank plans to make a net profit of about 45 billion kip this year. The bank's credit reached 1,661 billion kip in 2010, and is expected to reach 2,014 billion kip this year. Non-performing loans amounted to 3.27% of the total loans – The Vientiane Times.
- More loans to boost food production: The government has agreed in principle to provide loans for agricultural producers, so they can supply food for laborers working on the Laos-China railway, according to a senior official. There will be about 30,000 to 50,000 laborers working on the railway so the demand for food in Laos will increase. The Lao Agriculture Processing Association was discussing plans to increase production capacity while trying to obtain a low interest loan from the government. Lao businesses expect to supply about 20 to 30 percent of total food requirements over the first year, and will step up supply in the following years. The food prices in Laos surged about 8% in December compared to the same period last year. The government last year provided low interest loans for agricultural processing groups in the wake of animal disease outbreaks to help them get back on their feet – The Vientiane Times.
2. Exchange Rates: 10/02/2011
Exchange rates, quoted for the Lao Kip, by the Lao Development Bank
3. The Lao Securities Exchange
The Lao stock market
BCEL has not fully overcome its own weight; it could not grab on to the ceiling price after the first session, and dropped back down to almost where it started today. However, the trading volume of this stock surged by 36%, suggesting increasingly opposite reactions from investors: one tried to realize their diminishing capital gains, while the other tried to purchase the shares as they come down to a more affordable level. EDL-Gen experienced a similar situation to that of BCEL yesterday, when an unusually large selling wave flushed away a significant portion of the bidding orders. Even though both securities share the same symptom, EDL-Gen has been somewhat demonstrating more resilient movements than BCEL.
The LSX Index 1,496.89 19.43 (1.32%)
Many spectators seemed to enjoy the today show when the LSX benchmark green up its index after five consecutive downturns. In the first session, the index persisted its bearish run to 1,442.94 points as EDL continue to struggle; however, it reclaimed 54 points in the second session and closed at 1,496.89 points.
Appendix
* Market Data
LSX Index
EDL - Gen
BCEL
Lanexang Securities
|
