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10/03: Daily updates of the Lao Securities Exchange
1. Executive Summary
The Lao Securities Exchange: BCEL fell unconscious on its bottom price after the last bell of the Thursday sessions. Investors can now purchase one BCEL share for 9,700 Kip. The 6,700 Kip per share starts to become the next popular check-point for EDL-Gen when this stock rested at this price for the 5 fifth times. Total turnover for BCEL and EDL-Gen were 285 million and 939 million Kip respectively.
- Laos set to sign trade agreements with Canada, S. Korea: Laos has completed agreements with Canada and the Republic of Korea on bilateral accords regarding Laos' accession to the WTO and will sign the documents soon. The Lao WTO team is now in Geneva, Switzerland, to coordinate with representatives of both countries to name suitable days for the signings.
- Nam Lik 1-2 generates revenue of US$13m in first six months: The Nam Lik 1-2 hydropower plant has generated revenue of US$13 million in its first 6 months of its commercial operation. EDL, which holds a 10 percent share in the US$150 million power plant in Feuang district, Vientiane province, announced in its annual report at the end of last month that the joint venture plant has generated 277 million kWh of power since it began commercial operation in August last year.
- Vietnam pours millions of US dollars in rubber tree investment in Laos: The Dac Lat Rubber Company Limited of Vietnam has decided to spend more than US$50 million on rubber tree plantation and construction of a rubber processing factory to produce latex for export. Deputy Director of the Dac Lat Rubber Company Limited, Mr. Nguyen Ngoc Nguyen has recently disclosed that presently rubber trees have been planted on almost 9,000 hectares and the company will continue to expand more in the future.
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2. The Lao Securities Exchange
The Lao stock market
As BCEL knocked off almost 5% of its price, securities traders seemed to lose their final hope for this stock, which was evidenced in a 98% surge of supplies. However, 98% more demands seemed to think that was a good time to invest. If we compare both stocks against their IPO prices, the growth rate would be 64.4% and 55.8% respectively for BCEL and EDL-Gen. It means BCEL can still earn better returns for investors as of today. If BCEL does retreat to 9,200 Kip per share, which is possible in the upcoming week, the mentioned profit ratio will be reduced to 55.9% which is similar to current level of EDL-Gen. At that point, EDL-Gen shares will have an advantage over BCEL shares for its substantially better liquidity. The market already saw a small shift in capitals between the two listed stocks.
The LSX Index 1,380.55 -13.20 [-0.95%]
The Lao Composite Index could no longer wrap around BCEL, falling by a slight 0.95 per cent to 1,380 points. The market has not seen this low of an index since the second trading week. Total trades returned to the typical level of last week, shearing the market turnover down to only 1.2 billion Kip.
lanexang securities
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