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04/04: Daily updates of the Lao Securities Exchange
The Lao Securities Exchange saw no changes in its index for the first time; however its trading volume surged almost tenfold, signaling a strong possibility of a market turnaround. Total market turnover exploded to 7.7 billion Kip, almost 8 times as high as the yesterday figures.
1. Executive Summary
- The Lao Securities Exchange: The volcanic trading volume of EDL-Gen has become the highlight of the week when more than 1.16 million shares flooded the Lao stock market. The 1489% increase in trades has brought to EDL-Gen its third highest turnover of 7.6 billion Kip, despite its entangling market price. On the other hand, the liquidity of BCEL got caught inside a market funnel and flushed down by 71% to only 10 thousand shares. The combination of shrinking trades and immobilizing price has pulled the market turnover of BCEL down to 111 million Kip. As the LSX concluded its 8th trading week, the Lao composite index has lost 3.04% compared to last Friday. The total trading volume over this week amounted to 1.75 million shares, contributed mostly by EDL-Gen transactions (88%). The respective total market turnover appreciated by 42% to 12.6 billion Kip (1.57 mil. $US). The LSX will temporarily halt all trading next Tuesday (March 8th) to celebrate the International Women Day.
- Tax revenue from telecoms sector drops: Tax contributions by the telecommunications sector were only about 1.6 trillion kip (US$199.2 million) last year, a large decrease from the previous year. The contributions were over 1,930 billion kip (almost US$240.3 million) in 2009.
- Laos, Vietnam push for stronger forestry link: Laos is seeking increased cooperation with Vietnam in forestry, especially the processing and export of furniture, a Lao forestry official has said. In 2010, Vietnam raked in 3.4 billion USD from furniture exports. The country, however, imported 80 percent of the timber, mostly from Laos, for making furniture.
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2. The Lao Securities Exchange
The Lao stock market
Every time EDL-Gen experiences an eruption of trading volume similar to that of today, historical records showed that this company will change its price direction immediately; however, that might not be the case for next week. The Friday’s unsustainable demands were not sufficiently constructed on a solid foundation and would break easily. Furthermore, the selling thirst has not been satisfied, evidenced by a positive change of 6% in supplying surplus. EDL-Gen might be able to maintain its current price next Monday; however no clear sign of definite recovery was detected. BCEL stuck at the 10,800 Kip per share for the third time this week. The magnitude of both demands and supplies has been shortened further, endangering the liquidity of BCEL. As a result, the listed bank might lose a substantial amount of trades to EDL-Gen. Both listed companies should release to the public their 2010 annual financial statement by the end of March, or early April.
The LSX Index 1,392.80 - 0.00 [0.00%]
The Lao Securities Exchange saw no changes in its index for the first time; however its trading volume surged almost tenfold, signaling a strong possibility of a market turnaround. Total market turnover exploded to 7.7 billion Kip, almost 8 times as high as the yesterday figures.
LaneXang securities
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