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14/03: Daily updates of the Lao Securities Exchange
1. Executive Summary
The Lao Securities Exchange: Time is ticking away most of the gains on the listed stocks, and the LSX is rewinding back to almost where it started 2 months ago. BCEL emitted a shrieking sound sliding back to its third trading day. There were roughly 34 thousands BCEL share traded today at 8,800 Kip per share, suggesting a turnover of 301 million Kip. EDL-Gen did drop to 6,500 Kip in the first session; however the volume was only 14 thousand shares. At the very end of the second session, a significantly larger volume bid up the electricity generation company to 6,550 Kip per share. In term of market value and volume, EDL-Gen has depreciated by 2.24% and 25% respectively, converting to a 27% lost in trading turnover.
Central bank installs modern IT system: The Bank of the Lao PDR has completed installation of a modern IT system, which will enhance its capacity to deliver better services to commercial banks, such as allowing commercial banks to transfer money to other banks more easily. The new system will also enable the Lao Securities Exchange to provide electronic money transfer services to share traders, and facilitate banks to join ATM pools, allowing customers to withdraw money from a greater number of ATMs.
Vientiane province expands road network: Vientiane province will spend more than 25 billion kip to asphalt a 13.5km section of road between Huayphanla and Nongsan villages in Kasy district as one of the government's priority projects. The road will facilitate two further projects in the Nongsan area to provide electricity and irrigation. Currently there are difficulties transporting fuel, construction materials and electricity poles to the area.
2. The Lao Securities Exchange
The Lao stock market
Both stocks stayed fairly sedative in the first session, showing the skeptic reactions of investors. BCEL has been losing its liquidity over the weeks; it’s only predictable that the price of this stock will continue its free-falling even on the next 2 days. A large selling volume is waiting to swallow any attempt to raise the price on BCEL. The level of demands on EDL-Gen has been lessened (by 44%) to observe the market reactions. Portions of these capitals are willing to switch back to BCEL as this stock is returning to the 11th of January. Historical records showed that, in a bullish market, BCEL will return much better returns than EDL-Gen. The growth rate of BCEL and EDL-Gen are now, in that order, 49% and 52% against their IPO prices.
The LSX Index 1,331.62 -37.05 [-2.71%]
EDL-Gen has been showing signs of fatiguing for supporting the weights of both stocks. Today was just another drop on the already-filled cup. The Lao stock benchmark plunged 2.71% as both stocks submerged in red pigment. The combining weights spilled almost 16% of the market volume. Total market trades generated a turnover of 1.5 billion Kip, 22% below the average turnover of last week.
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