|
24/02: Daily updates of the Lao Securities Exchange
The fueling stocks prices helped the LSX benchmark rally 1.97%, to the 1,414 index points. The market was able to pump out a trading volume of 257 thousand shares, equivalent to 126% of the yesterday amount. As a result, the market turnover appreciated by 11% to 1.74 billion Kip.
1. Executive Summary
- The Lao Securities Exchange: The Thursday sessions sounded the victorious horn when both listed stocks triumphed over the yesterday downfall and eased their way back to the green zone. BCEL toasted to its 3.67% gains, while EDL-Gen enjoyed its small advance of 1.5%; their closing prices were 11,300 and 6,650 Kip per share respectively. BCEL exchanged its gains for a 79% loss in turnover, down to only 122 million Kip. On the contrary, total tradingvolume of EDL-Gen surged 64% and netted a gushing turnover of 1.6 billion Kip.
- Hongsa power plant takes step forward: An agreement relating to the operation and maintenance of the ‘Hongsa Mine Mouth Power Project’ was signed between Hongsa Power Co Ltd and the Electricity Generating Authority of Thailand (EGAT) yesterday in Vientiane. The ownership of Hongsa project splits between Ratchaburi Electricity Generating Holding Public Company (40%), Banpu Power Ltd (40%), and Lao Holding State Enterprise (20%). The agreement will last for 25 years and starts once construction is completed; energy generation will begin at the end of 2015. The lignite-fired power plant will cost about 30.2 trillion kip (US$3.7 billion) to build, with 70% financed by loans and the remaining 30% provided by the company. Hongsa will be the largest power plant and lignite mine in Laos. It will have an installed capacity of 1,878 megawatts (MW). Most of the electricity generated will be exported to Thailand with the rest sold to Electricite du Laos for local consumption – The Vientiane Times
- Thai import tax hits Lao sweetcorn growers: Thailand has infringed the Asean Trade in Goods Agreement after the government slapped an import tax on sweetcorn, deterring Thai traders from buying the crop from Laos. Now more than 200,000 tonnes of sweetcorn lies in storage in Xayaboury province after the Thai Trade Department imposed a 73 percent tax on sweetcorn imports outside of fixed quotas last month. The Thai import tax is intended to reserve the market for domestic farmers, but will be suspended from March 1 to June 30. This issue will be discussed at the Coordinating Committee for Implementation of Asean next month after the Lao government reported the problem to the Thai government. Sweetcorn imported into Thailand within set quotas is subject to a 19 percent tax. About 60,000 tonnes of the Xayaboury crop had been sold to Thailand before the tax was imposed. Some of the sweetcorn in storage has been sold to Vietnam and China, but high transport costs drive up the price and deter some potential purchasers. Agricultural exports from Xayaboury province to Thailand totalled over US$26 million in fiscal year 2009-10, of which sweetcorn accounted for about US$25 million – The Vientiane Times.
2. Exchange Rates: 24/02/2011
Exchange rates, quoted for the Lao Kip, by the Lao Development Bank
3. The Lao Securities Exchange
The Lao stock market
Investors have ceased their panic sell-offs, however the bad news is the Lao securities market became less liquid. On the 20th of January, BCEL saw an unprecedented trading volume of 360 thousand shares. One month later, on the 24th of February, BCEL still stood at the same price, the only differences were the declining demands (by 86%) and supplies (by 96%). EDL-Gen, on the other hand, showed signs of a turnaround. Demands for this stock have trended up while supplies were shrinking quickly. Perhaps the Friday sessions will signify another price fortification for EDL-Gen.
The LSX Index 1,414.39 + 27.34 (+ 1.97%)
The fueling stocks prices helped the LSX benchmark rally 1.97%, to the 1,414 index points. The market was able to pump out a trading volume of 257 thousand shares, equivalent to 126% of the yesterday amount. As a result, the market turnover appreciated by 11% to 1.74 billion Kip.
Appendix
* Market Data
LSX Index
EDL-Gen
BCEL
Lanexang Securities
|
