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15/02: Daily updates of the Lao Securities Exchange
The Lao securities market was testing the faint-hearted investors when it made a sudden turn-around,despite the general confidence for its next bullish run. EDL-Gen stamped the last Friday mark as day traders realized their hasty gains. The 1.3 million shares of EDL-Gen sold on the 10th Feb could have made a potential profit of 11 percent if investors chose the right moment. At the same time, BCEL displayed unexpected price fluctuations. BCEL made its way to 13,700 Kip in the first session; but investors’ swaying mentality got the best of it in the second session. BCEL improved its trading volume by 56.67 percent, suggesting ongoing demands for this stock.
1. Executive Summary
- The Lao Securities Exchange: Irregular large sell-offs weakened the Lao Securities Market right at its verge of recovery. EDL-Gen faced the 7,350 Kip for the second time, right after its exertion to 7,700 Kip yesterday. BCEL is currently valued at 13,000 Kip per share, retreating by 2.99 percent from its previous closing price. Market turnover lurched to 4.7 billion Kip as the total volume shrank to less than 514 thousand units, equivalent to only 62% of the yesterday amount.
- Government expects to complete stock market law this year: Lao Securities and Securities Market Commission Office's Acting Secretary General, Ms Vatthana Daraloy, said last week the law drafting committee expected to have the law written by the middle of this year before submitting it to the cabinet and National Assembly for approval. The commission will also develop regulations regarding the information disclosed by listed companies, the payment system for stock trading, and the foreign investments. Rapid inflows and outflows of foreign currency make it difficult for the Bank of the Lao PDR to keep the value of the Lao kip stable.
- Cooking oil producer slashes price in face of competition: Last week, Sengsavang Food and Plastic Production Company, the nation's sole cooking-oil producer, slashed its oil price by 75,000 Kip. The price of its 18 liter batch was 325,000 Kip, and has now been reduced to 250,000 kip. Sengsavang now sells its cooking oil for 16,000 to 18,000 kip per liter in the markets; similar to that of imported brands. Sengsavang imports unfiltered cooking oil from Malaysia, Indonesia and Thailand, then filters it and packages the oil in labelled containers and bottles, which are also made by the company. The company's products are sold under the brand name ‘Somboun', and first entered the market in 2000. Previously only sold in Vientiane, the oil is now marketed nationwide.
2. Exchange Rates: 15/02/2011
Exchange rates, quoted for the Lao Kip, by the Lao Development Bank
3. The Lao Securities Exchange
The Lao stock market
The Lao securities market was testing the faint-hearted investors when it made a sudden turn-around,despite the general confidence for its next bullish run. EDL-Gen stamped the last Friday mark as day traders realized their hasty gains. The 1.3 million shares of EDL-Gen sold on the 10th Feb could have made a potential profit of 11 percent if investors chose the right moment. At the same time, BCEL displayed unexpected price fluctuations. BCEL made its way to 13,700 Kip in the first session; but investors’ swaying mentality got the best of it in the second session. BCEL improved its trading volume by 56.67 percent, suggesting ongoing demands for this stock.
The LSX Index 1,576.74 -69.31 (-4.21%)
The Lao Composite Index scrolled back to 1,576.74 points as price confusion threw investors off balance. The awaiting recovery could take slightly longer than planned; however the sustainably large trading volume in a bearish trend could represent the circulations of fresh capitals, which is one of the necessary factors for a healthy market recovery.
Appendix
* Market Data
LSX Index
EDL-Gen
BCEL
Lanexang Securities
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