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22/02: Daily updates of the Lao Securities Exchange
The Lao Composite Index trembled at the arising chaos, retreating 4.27% and taking shelter at the 1,425.42 points mark. The active market volume also fled 29 per cent to 215 thousand shares, back to the last Friday level, and traded for 1.8 billion Kip.
1. Executive Summary
- The Lao Securities Exchange: The Lao stocks market was completely submerged as another tsunami of confusion hit both stocks. BCEL sank to 11,400 Kip per share from the yesterday 11,900, dragging down its trading volume from 111 thousand to only 75.4 thousand shares. On the other side, an irresistible sell-offs pressure strained on top of EDL-Gen, pushing this stock deeper than its previous ‘psychological’ bottom. By the time EDL-Gen was able to resist the selling weight; it has lost 4.29% of its market value to 6,700 Kip per share and 27% of its trading volume to roughly 140 thousand shares.
- Laos’s membership of WTO in progress: More than 50 government officials from ministries and public organizations have gathered at the 6th Ordinary Session of the International Co-coordinating Committee on International Economic Integration to oversee the improvement of laws concerned in preparation for the membership in the World Trade Organization. The objective of this meeting was to review the amendment to laws of each relevant sector in preparation for the Lao PDR accession to the WTO and negotiations. They were also informed that some laws were not possibly for amendment at the previous meeting. Laos completed the bilateral negotiation on trade with Canada and South Korea, in addition to signing agreements with Japan and China in 2010. Laos would negotiate trade with the European Union and Australia before mid-2011. The upcoming meeting will focus on improving the laws on import and export control, consumption goods price, investment, tax, customs, crop sanitation and quarantine – Lao News Agency
- Samneua-Viengsay power grid upgrade under way: The Electricite du Laos (EDL) branch in Houaphanh province and Thavisab Construction Maintenance and Installation Company have signed a memorandum of understanding on improving power grid project between Samneua and Viengsay. The development project, estimated at 15 billion kip, will include the installation of 22-KV power grid from Samneua district to Viengsay district, Houaphanh province. The work is expected to start late this month and complete in mid-2011 – Lao News Agency
2. Exchange Rates: 22/02/2011
Exchange rates, quoted for the Lao Kip, by the Lao Development Bank
3. The Lao Securities Exchange
The Lao stock market
A large portion of investors could no longer sit and wait for a stocks recovery. The total selling volume on EDL-Gen surged 140% to 1.9 million shares, which was almost 12 times larger than its demands. On the 10thof February, the price of EDL-Gen was at the same level; however its demands were roughly 2.7 million shares, almost twice as much as the supplies. The market can clearly sense the fear in the eyes of those investors who already committed themselves to EDL-Gen. On the contrary, BCEL did not show signs of desperation. Its demands appreciated by a slight 5.5% as supplies shrouded away 48% of the yesterday amount, signaling a possible sign of a bottom. Perhaps the absence of foreign element in BCEL shares resulted in a calmer reaction.
The LSX Index 1,425.42 -63.55 (-4.27%)
The Lao Composite Index trembled at the arising chaos, retreating 4.27% and taking shelter at the 1,425.42 points mark. The active market volume also fled 29 per cent to 215 thousand shares, back to the last Friday level, and traded for 1.8 billion Kip.
Appendix
* Market Data
LSX Index
EDL-Gen
BCEL
Lanexang Securities
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