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25/02: Daily updates of the Lao Securities Exchange
The Lao stock market cautiously took another step forward, waiting anxiously for what’s to come next week. EDL-Gen and BCEL treaded lightly by 1.50% and 1.77% to 6,750 and 11,500 Kip per share respectively.
1. Executive Summary
- The Lao Securities Exchange: The Lao stock market cautiously took another step forward, waiting anxiously for what’s to come next week. EDL-Gen and BCEL treaded lightly by 1.50% and 1.77% to 6,750 and 11,500 Kip per share respectively. EDL-Gen throttled its liquidity by 61% to 95 thousand trading units, limiting its turnover to only 640 million Kip, down from 1.6 billion Kip of yesterday. BCEL caught a pleasant breeze and inhaled 236% more trading shares compared to the 11 thousand units of yesterday; as a result, its turnover inflated by 245% to 423 million Kip. By the end of the 7th trading week, the LSX Index has plunged 6.9% compared to last Friday. Total market volume shrank 57% to 1.1 million shares, splitting to an average of 222 thousand trading shares per day. The average market turnover of this week fell by 60% to 1.7 billion Kip per day.
- Laos fosters sustainable development in mining: The Lao government and the International Council on Mining and Metals (ICMM) yesterday discussed the utilization of mining and mineral resources to foster the sustainable development of the Lao PDR.
- Vientiane province sees drop in exports to Thailand: Exports from Vientiane province to Thailand decreased by 16 percent in 2010 compared to 2009, as more products were sold on the domestic market and others were exported to Vietnam and China.
- Government expands rice stockpile: The government has approved 50 billion kip of budget this year to set up rice stockpiles in provinces to ensure rice sufficiency and security and price stability in case of natural disasters.
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2. The Lao Securities Exchange
The Lao stock market
In the absence of additional supportive news from the two companies, investors lost their directions inside the securities labyrinth. EDL-Gen lost a significant amount of trades today as both demands and supplies shrank by more than 50%. The 7,000 Kip per share was thought to be the lowest point that EDL-Gen would fall, as evidenced by a total of more than 2 million shares at this price over the last three weeks. As soon as EDL-Gen broke through this ‘psychological bottom,’ investors turned panic and tried to push all their shares away, explaining the masses of selling earlier this week. As the price showed signs of recovery by the end of the week, selling pressure slowed its paces, suggesting a temporary halt of sell-offs next week. Stock traders noticed the shrinking demands on BCEL, and their immediate reaction is to willingly take a 5% to 9% loss, forgetting that impatience hardly pays off.
The LSX Index 1,436.45 +22.06 [+1.56%]
The Lao Composite Index built up another green block of 22.06 points, rising to the 1,436.45 benchmark. Total market volume dipped 49% to 132 thousand shares, converting to an equivalence of 1.06 billion Kip.
lanexang securities
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