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23/02: Daily updates of the Lao Securities Exchange
The Lao securities market slid harder on the red mud as both listed stocks continued to slip away from their previous gains.
1. Executive Summary
- The Lao Securities Exchange: The Lao securities market slid harder on the red mud as both listed stocks continued to slip away from their previous gains. All BCEL could do was watch.the shivering demands shred its price to 10,900 Kip per share, down from the yesterday’s 11,400 Kip. EDL-Gen showed a glimpse of hope for fighting its way back to the 6,800 Kip per share in the first session; however it got overwhelmed by panic sell-offs in the second session. At the end, EDL-Gen settled with 6,550 Kip per share, down by 2.24 per cent.
- Resettlement delays northern hydropower project: Development of the Nam Tha 1 hydropower project in Bokeo and Oudomxay provinces has been delayed as too many villages would have to be relocated. The planned dam would create a 64km reservoir capable of storing 17.55 billion cubic metres of water, which would involve the flooding of many villages, according to China Southern Power Grid Co Ltd (CSG) reported in early 2008. CSG holds a 85% stake in the project with Electricite du Laos holding the other 15 percent. The project would cost about 3.1 trillion kip (US$340 million), including 280 billion kip (US$32 million) to relocate local communities. In 2008, the project reported the dam would take 4 years to build and energy generation would begin in 2012, with three 168MW generators. Laos will witness the opening of at least two new power plants each year between now and 2020. In 2006 the country had only 10 power plants with a total capacity of 700MW. Now it has 14 plants with a total capacity of 2,540MW.
- Laos streamlines customs clearance for Asean integration: Laos will set up a single window customs clearance system next year as part of its AFTA obligations to facilitate the free flow of goods among other ASEAN member countries. According to a report from the Customs Department, Laos will install an international customs clearance system at the Vientiane-Nong Khai International Checkpoint as a pilot project this year. The department is now training customs officials around the country in the use of the newly developed Automated System for Customs Data (Asycuda). Asycuda is a computerized customs management system developed by UNCTAD, covering most foreign trade procedures and being applied by many countries around the world. The department plans to install the system at all 10 international border checkpoints by 2013. The system will also help the government to compile trade data that can be used for statistical analysis. This system was developed under a US$6 million grant from the World Bank. The Lao government also contributed about US$240,000 to the project as part of its efforts to modernize customs clearance.
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2. The Lao Securities Exchange
The Lao stock market
Total BCEL supplies has deteriorated by 32.5% to 82 thousand units, suggesting that this stock has become ‘too cheap’ to sell. However, demands for BCEL also dropped 39%, indicating the investors’ unwillingness to buy. BCEL is apparently facing a serious liquidity problem. If the Lao securities market can be seen as an ‘hourglass,’ then it needs to be flipped around in order for the BCEL ‘sand’ to start flowing again. On the contrary, EDL-Gen enjoyed a surge of buying orders as this stock reached its three-week low. Total demands enlarged by 82% to the smoldering 309 thousand shares, while total supplies shrank 71% to 556 thousand units. The trading volume of 150 thousand shares might not be able to push EDL-Gen upward, but might prevent this stock from falling further.
The LSX Index 1,387.05 -38.37 [-2.69%]
The wagging LSX index tilted closer to the 1,387 mark as this benchmark kicked away another 38.37 points. Total market liquidity worsened by 5.6% to roughly 203 thousand shares, which exchanged for a turnover of 1.57 billion Kip, down by 13.8 per cent.
3. Appendix
LSX Index
Lanexang Securities
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