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17/03: Daily updates of the Lao Securities Exchange
1. Executive Summary
The Lao Securities Exchange: BCEL exhilarated the Lao stock market with another precious gain of 4.76 percent. One BCEL share is now worth 9,900 Kip, the highest bargaining value since Monday. Total BCEL volume rose 76% to more than 111 thousand shares. Usually, EDL-Gen would generate a more significant volume, and the meter read 413 thousand shares for today. EDLGen reproduced the yesterday situation when its price went down to 6,550 Kip in the first session and then turn back up to 6,600 at the end. The overall turnovers for both stock symbols were substantially higher than yesterday due to the surge in trading volume.
Depositors' protection fund boosts reserves: The Depositors' Protection Fund (DPF) will increase its assets by 48% from 38,732 million kip of last year to 57,478 million kip. The fund plans to encourage two Vietnamese banks recently established in Laos, the Military Bank and Sacombank-SBS and 34 other finance institutions, to become members of the fund. The number of membership increased from 14 banks in 2009 to 20 banks, allowing the DPF to increase interest earned on the fund from 5,714 million kip to 8,000 million kip in the same period.
Garment exports to Japan on track: The export value of Lao garment products to Japan will remain stable despite the recent natural disasters. There are four to five major Japanese garment factories in Laos, which make clothes and other items for the Japanese market. The value of Lao garment exports to Japan is about US$8 million a year. Japan is the sixth largest buyer of Lao-made garments after the European Union and the USA.
2. The Lao Securities Exchange
The Lao stock market
BCEL has already plated its recovery path with three consecutive gains, signified by the growing demands. The price of BCEL has jumped 12.5% since Monday of this week, followed by a 272% increase of demands in the same period. Many investors chose to stay out of the Lao stock market as the prices kept plunging down. However, the recent ‘BCEL stimulus’ is definitely swaying even the most decisive spectators. The demands of EDL-Gen unexpectedly erupted to almost 700 million shares. One possible reason is that BCEL will bolster the price recovery of EDL-Gen, and investors decided to jump in EDL-Gen for its better liquidity. Additionally, positive news regarding revenues from hydropower projects of EDL-Gen also help strengthens confidence in this company.
The LSX Index 1,377.44 +11.88 [+0.87%]
Despite the passive price change of EDL-Gen, the Lao Composite Index still spun forward 0.87 percent, to 1,377.44 points. Total trades surged 133% to 524 thousand shares, of which almost 80% was contributed by EDLGen.
The combined turnover of both listed stocks reached an inspiring 3.8 billion Kip, which is 2.3 times higher than yesterday.
lanexang securities
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