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14/02: Daily updates of the Lao Securities Exchange
EDL-Gen has been upholding tremendous demands over the last three trading days, which amount to roughly 2.8 shares. This number reminds us of the 2nd February, when 2.7 million shares of EDL-Gen were traded at 8,850 Kip per share. Small investors were probably trying to cut losses by selling their EDL-Gen at a lower price, explaining the recently abnormal supplies of this stock. On the contrary, BCEL quietly trended upward with only 97 thousand shares. Perhaps, BCEL’s investors are getting back to their comfort zone, reluctant to give up their shares.
1. Executive Summary
The Lao Securities Exchange: Both BCEL and EDL-Gen continued to surf the strong current as new capitals channeled toward the Lao securities market. BCEL weaved another gain of 4.69 percent, netting 13,400 Kip per share by the end of the day. At the same time, EDL-Gen advanced onward for another 350 Kip and closed at 7,700 Kip per share. A total of 830 thousand shares were exchanged for a turnover of 6.95 billion Kip, which is 12.25% higher than last Friday.
New decree aims to control rising prices: Rising costs in Laos have forced the government to issue a decree controlling sales prices for selected products and services in a bid to protect consumers. Under the decree, unfair practices, such as failing to disclose prices, giving deceitful pricing, withholding products from market sales without any good reasons, and setting prices without informing the price management authorities, etc., will be penalized from 500,000 Kip to 5 million Kip per violation per product. Ministry of Commerce and Industry's Domestic Trade Department Deputy Director General Bounthien Keosipha said about 15 products, including fuel, rice, and cement, will be registered as controlled goods. Vendors of controlled products must ask permission of authorities before increasing or decreasing prices – The Vientiane Times.
Rising fuel costs put pressure on cement, steel prices: Construction material producers are absorbing the higher transport costs after the government announced the third increase in fuel prices this year. “Cement prices have not gone up even though we’re having to pay increased transport costs,” the Cement Producers' Group Secretary Mr Inpone Phathananoulack said yesterday. The group now pays 95,000 kip per tonne instead of 85,000 kip for transport from Vangvieng district in Vientiane province to the capita. The current price of ‘green' brand cement is 680,000 to 710,000 kip per tonne and 750,000 to 780,000 kip per tonne for ‘red' brand cement. The group has been selling at these prices since May last year. However, some steel producers have adjusted their prices upwards to compensate for the high price of fuel – The Vientiane Times.
2. Exchange Rates: 14/02/2011
Exchange rates, quoted for the Lao Kip, by the Lao Development Bank
3. The Lao Securities Exchange
The Lao stock market
EDL-Gen has been upholding tremendous demands over the last three trading days, which amount to roughly 2.8 shares. This number reminds us of the 2nd February, when 2.7 million shares of EDL-Gen were traded at 8,850 Kip per share. Small investors were probably trying to cut losses by selling their EDL-Gen at a lower price, explaining the recently abnormal supplies of this stock. On the contrary, BCEL quietly trended upward with only 97 thousand shares. Perhaps, BCEL’s investors are getting back to their comfort zone, reluctant to give up their shares.
The LSX Index 1,646.05 +74.58 (+4.75%)
The upper side of the graph started to become more visible as the Lao index had its third recovery injection. The LSX index propelled forward to 1,646.05 points without much resistance, signifying a 4.75 percent gain. The benchmark has climbed an impressive 12% from its recent bottom only within three active days, suggesting strong supports and confidence for the Lao securities market.
Appendix
* Market Data
LSX Index
EDL-Gen
BCEL
Lanexang Securities
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