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02/03: Daily updates of the Lao Securities Exchange
The Wednesday sessions beamed another scarlet ray on the Lao securities market, leaving burn-marks on both stocks.BCEL stopping at the 10,800 Kip per share.The price of EDL-Gen diluted down to 6,700 Kip per share.
1. Executive Summary
- The Lao Securities Exchange: The Wednesday sessions beamed another scarlet ray on the Lao securities market, leaving burn-marks on both stocks. BCEL sheared through its 5-week low, stopping at the 10,800 Kip per share; however, its trading volume surged 67% to 68 thousand shares, capturing a turnover of 741 million Kip. The price of EDL-Gen diluted down to 6,700 Kip per share as its trading volume enlarged by 81 percent to 133 thousand shares, evoking a total market turnover of more than 901 million Kip.
- Lao Holdings State Enterprise delivers progress report: The Lao Holdings State Enterprise (LHSE) held its annual meeting on Monday to report on the successes of the government's investment projects, including the Nam Theun 2 hydropower project.
- Electrical specialist eyes Lao market: A global specialist in energy management and electrical equipment is interested in setting up business in Laos in the near future after seeing the growth of the energy, mining and IT sectors.
- Renewed campaign to attract more tourists: The Lao National Tourism Administration (LNTA) expects to attract more tourists to Laos through the Lao Tourism Marketing Board, which was set up last year to work with all stakeholders in the industry.
- Agriculture ministry seeks US$1.8b to achieve five-year goals: The sector plays an important role in the country's future economic growth, with a value of US$1.8 billion and the ministry believes it can reach its goals and contribute to achieving the nation's economic growth target of at least 8% per year from 2011 to 2015.
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2. The Lao Securities Exchange
The Lao stock market
Traders slammed BCEL’s shares on the floor for the second time this week, equivalent to 6.1% drop compared to last Friday. EDL-Gen only delved by a static 0.7 percent in the same period. The low trading volume on BCEL has caused this stock to fluctuate in a more volatile fashion than EDL-Gen, which is also an indication of a higher level of selling anxiety. BCEL has broken its 5-week low, but its demands did not show signs of recovery; and clearly no selling enthusiasm was detected at this level. However, BCEL has come down to a phase similar to the second trading week, representing a great opportunity for long-term investors. EDL-Gen approached fairly strong buying urges on the lower end; however the sell side would not yield to the growing demands, suggesting that the price might not go deeper. The slower falling rate, of only -0.74%, also suggests a great time to purchase EDL-Gen.
The LSX Index 1,409.58 -21.59 [-1.51%]
The Lao Composite Index looped backward by 1.51 percent as a result of declining stock prices, hovering slightly above its 4-week low level. Total trades soared abruptly by 76% to 201 thousand shares, stretching the market turnover to an unsustainable 1.6 billion Kip.
LaneXang securities
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