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09/03: Daily updates of the Lao Securities Exchange
The Lao market tested the 1,400 index mark today as EDL rallied to the 6,700 Kip. However, the weight BCEL put on the market was too great to overcome.
1. Executive Summary
- The Lao Securities Exchange: EDL-Gen dazzled investors with a sudden billow of trading volume, as the coral BCEL sank deeper to the bottom. Demands and supplies of EDL-Gen have found a new equilibrium point at 6,700 Kip per share, 1.52% higher than the previous level. On the other side, BCEL helplessly watched its market price slide down to 10,200 Kip per share.
- Laos to import less electricity this year: Laos expects to import less electricity from neighboring countries this year now that several hydropower plants in the country are operational. Laos imported 998 million kWh in 2010, resulting in foreign currency outflow to Thailand, China and Vietnam of US$50 million as demand for power increased due to rapid economic growth. According to EDL, total electricity consumption in Laos is forecast to reach 2,554 million kWh this year.
- Telecoms sector tax contribution set to rise: The National Authority of Post and Telecommunications (NAPT) expects that taxes paid by the telecoms sector will exceed 1.8 trillion kip this year. The contribution target for the telecoms sector was lowered as a result of the 2010 contributions falling to 1.6 trillion kip, a decrease from more than 1.7 trillion kip in 2009.
- Cooking oil, cement prices remain stable amid petrol hikes: The government last week announced an increase to petrol prices for the 4th time this year, while the prices of local cooking oil and cement supplies remain stable. The nation's only cooking oil producer, Sengsavang Food and Plastic Production Company, still sells oil at 250,000 kip for the 18-literred batches as the company had to honor previous purchase agreements with customers and dealers.
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2. The Lao Securities Exchange
The Lao stock market
Investors grew inquisitive at EDL-Gen, as this stock exhibited another intriguing show today. Total trading volume of EDL-Gen burst abruptly to almost 580 thousand shares at the very end of the second
session. Many opinions theorized differently about the recent abnormal activities on the EDL-Gen side.
Perhaps, investors grew impatient with the withering liquidity of BCEL and decided to switch over to the other company. If that was the case, the today demand will be short-lived. The listed bank has completely drained out its demand surplus. Day traders were reluctant to purchase the already cheapening BCEL, fearing that they won’t be able to sell the shares later on. The situation will most likely to persist till the end of the week. IPO investors can still gain 72.8% for their BCEL shares and 55.8% for their EDL-Gen shares.
The LSX Index 1,393.75 +.23 [+.45%]
The Lao market tested the 1,400 index mark today as EDL rallied to the 6,700 Kip. However, the weight BCEL put on the market was too great to overcome. At the end, the LSX index managed to crawl up 0.45 per cent, closing at 1,393.75 points. Total turnover rose to a tidy 4.03 billion Kip as the market volumes unexpectedly increase six fold.
Lanexang securities
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