|
17/02: Daily updates of the Lao Securities Exchange
The LSX benchmark barely scraped off the 1,500 index as BCEL slightly shifted downward. The overall amount of participating shares reached 491 thousand units, which produced a total market value of 4.29 billion Kip. The Thursday sessions have built a sufficient foundation for the market to bounce, however skeptic opinions suspect otherwise.
1. Executive Summary
- The Lao Securities Exchange: The market saw opposite reactions today as investors were debating whether the stocks have reached the bottom. EDL-Gen clung tightly to the yesterday price of 7,000 Kip, while the other symbol excavated 400 Kip deeper to 12,000 Kip per share. BCEL obtained a transient turnover of 2.04 billion Kip as volume increased by 66 percent. At the same time, EDL-Gen generated a withering 2.24 billion Kip when fewer shares were exchanged on the LSX floor.
- Vietnam hands over hydro-power plant to Laos: On February 10 Vietnam handed over the Sekaman hydro-power project No. 1 to Laos for the duration of 30 years. An agreement to this effect was signed in Vientiane by the Laotian Deputy Minister of Planning and Investment Thongmi Phomvisay and General Director of the Sekaman hydro-power project No.1, Nguyen Xuan Hien. The project is under the energy cooperation program, which will supply power for consumers and industry in southern Laos. The project includes the Sekaman hydro-power plant No. 1 and the Sekaman Sansay hydro-power plant in Sansay district, Attapeu province, 75km from Vietnam. The two power stations have a combined capacity of 322 MW and cost a total investment capital of 441.6 million USD. They are expected to begin operating in 2015 and will provide 20 percent of their output to Laos with the remaining exported to Vietnam – Lao News Agency.
- Laos, Thailand cooperate to promote commerce: A memorandum of understanding was signed on Monday in Nong Khai province, Thailand, between the Lao National Chamber of Commerce and Industry (LNCCI) and the Federation of Thai Industry (FTI). Under the agreement, both sides will cooperate, promote and exchange information on the condition of their economies, regulations governing investment, and import and export information. Laos is increasingly using advanced technology to boost production capacity, and to create good conditions for business operators and traders. Technical cooperation and good management are necessary to certify the quality of products and ensure standards. The cooperation agreement is intended to develop Nong Khai province into a commercial and economic hub in the northeast of Thailand and create a marketing link between sellers and buyers both domestically and overseas. The proposed high-speed railway in Laos will enable Thailand and Laos to more easily import and export products – The Vientiane Times
2. Exchange Rates: 17/02/2011
Exchange rates, quoted for the Lao Kip, by the Lao Development Bank
3. The Lao Securities Exchange
The Lao stock market
It’s too early to establish a support zone for the Lao Composite index, but this benchmark is edging very close to the last Wednesday level, which is believed to be a strong area for a rebound. A support zone is an area where demands can overcome the supplies to prevent the prices from declining further. The logic dictates that as the prices decline towards the supportive zone, buyers become more inclined to buy and sellers become less inclined to sell. A combination of shrinking supplies (by 29%), enlarging demands (by 10%), and idle price suggests that EDL-Gen is stabilizing and preparing for a turnaround. The indications of BCEL are not as clear, however the demands for this stock has surged 181% amid the bearish trend, signaling a possible recovery for this stock.
The LSX Index 1,491.61 - 10.55 (- 0.70%)
The LSX benchmark barely scraped off the 1,500 index as BCEL slightly shifted downward. The overall amount of participating shares reached 491 thousand units, which produced a total market value of 4.29 billion Kip. The Thursday sessions have built a sufficient foundation for the market to bounce, however skeptic opinions suspect otherwise.
Appendix
* Market Data
LSX Index
EDL-Gen
BCEL
Lanexang Securities
|
