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01/03: Daily updates of the Lao Securities Exchange
The Lao market shredded the investors’ confidence into piles of dissatisfaction as both listed companies dulled their previous gains.
1. Executive Summary
- The Lao Securities Exchange: The Lao market shredded the investors’ confidence into piles of dissatisfaction as both listed companies dulled their previous gains. BCEL poured cold water over the gains of the last two trading days, cooling back to the 11,300 Kip per share, equivalent to a loss of 500 Kip. EDL-Gen got caught in a gush of adverse wind and blown back to the Friday’s 6,750 Kip per share, equivalent to a 2.17% downswing. The trading turnovers of BCEL and EDL-Gen dampened by 28% to only 464 million and 503 million Kip respectively.
- ETL's income falls short of target but operations grow: A major national telecom provider, Enterprise of Telecommunications Lao (ETL), has reported that income for 2010 fell by about 8 percent compared to the previous year. ETL received about 422 billion kip (almost US$53 million), about 90 percent of the company's target.
- EDL vows to keep electricity expansion on track: At present, about 70 percent of Lao families have access to electricity. Electricite du Laos expects to connect 80% of Lao households to the electricity grid by 2015, amid power grid expansion and hydropower plant construction.
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2. The Lao Securities Exchange
The Lao stock market
Sell-offs pressure was too vigorous at 7,000 Kip for EDL-Gen to cut through; as soon as it reached this price level in the first session, strong selling waves immediately overwhelmed the buy side. BCEL also encountered a similar resistance at the 12,000 Kip per share. The liquidity of both stocks turned dry, by more than 25%, as the hesitant demands shelved down for some positive market reactions. Demands were rallying gradually, yet apparently they are not strong enough to push the prices over the psychological ceilings. The market shows no signs of worsening, but it needs more than just thin bandages to stop the price bleeding, perhaps fresh injections of new capitals.
The LSX Index 1,431.17 -38.37 [-2.61%]
As traders pinched the stock prices, the Lao composite benchmark compressed by 2.61%, contracting down to 1,431 index points. Total trades withered down to only 115 thousand shares, resulting in shrinkage of market turnover by 28 per cent, down to 967 million Kip.
LaneXang Securities
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