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21/02: Daily updates of the Lao Securities Exchange
The Lao securities benchmark curled back its tail by 3.57% to the 1,489 index points, shaping around 0.18% underneath the lowest point of last week. The overall market liquefied its trading volume by 39% to almost 304 thousand shares, exchanging for approximately 2.67 billion Kip.
1. Executive Summary
- The Lao Securities Exchange: The late ‘pat on the back’ of last week could not help the Lao Securities Market with its prolonging coughing. The Monday sessions were just one of those unpleasant days. BCEL worsened to 11,900 Kip per share after recovering to 12,400 last Friday. On the other side, EDL-Gen rooted back into its 7,000 Kip per share, equivalent to the 3.45% price shrinkage. BCEL inflated its trading volume by 61% to 111 thousand shares; while EDL-Gen only enlarged by 29% to roughly 192 thousand units.
- Laos performs well in portfolio implementation: The Asian Development Bank has said that last year, the Lao PDR performed well in terms of portfolio implementation with 106% achievement in contract awards and 98% achievement in disbursement against the projections in 2010. The good performance has in part led ADB to allocate to Laos USD 152 million of its Asian Development Fund for 2011-2012, an increase of USD 37 million compared to the FY 2010. The ADB has committed to further providing training for both executing agency staff through conducting project implementation seminars and organizing the so-called ‘procurement clinics’ to discuss and resolve project-specific procurement issues starting in March 2011. The ADB has launched a new streamlined project performance rating early this year. The new rating system is based on five performance criteria: technical, contract awards/commitments, disbursements, quality and timeliness of audited project accounts and safeguards compliance – Lao News Agency.
- Namtha 3 dam on track for power generation mid-year: The Namtha 3 hydropower plant has been undergoing renovations by a local construction company after the plant ceased its operation in 2006 due to flood damage. So far roughly 30% of the renovation has been completed only within a month. The plant has a capacity of 1.25 megawatts (MW) and the electricity generated will be sold to Electricite du Laos (EDL) for local supply. Provincial Energy and Mines Department Director, Mr Phonxay Chanthason, said currently the province receives about 70 percent of its electricity from China and the rest from the Nam Ngum 1 hydropower plant. The recovered Nam Tha 3 will add to the supply – The Vientiane Times.
2. Exchange Rates: 21/02/2011
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 seemed to be caught inside a quicksand trap, only sank deeper at each locomotion attempt. However, investors have not given up and tried to pull the market out of the pit.Despite many skepticism about the liquidity of an emerging market; the Lao securities exchange has shown optimistic signs regarding this concern. The trading volumes of BCEL and EDL-Gen were still layering up as stock prices caught the bottom again, indicating the general opinion for a potential uptrend. At the same time, the market can sense the anxiety of EDL-Gen investors, when the size of selling orders for this stock surged violently as its price struggled to move on.
The LSX Index 1,488.97 -55.16 (-3.57%)
The Lao securities benchmark curled back its tail by 3.57% to the 1,489 index points, shaping around 0.18% underneath the lowest point of last week. The overall market liquefied its trading volume by 39% to almost 304 thousand shares, exchanging for approximately 2.67 billion Kip.
Appendix
* Market Data
LSX Index
EDL-Gen
BCEL
Lanexang Securities
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