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23/03: Daily updates of the Lao Securities Exchange
1. Executive Summary
The Lao Securities Exchange: The Wednesday sessions managed to plant some green seeds on the Tuesday’s rubbles. Both BCEL and EDL-Gen enjoyed positive price movements of 1.73% and 0.76% respectively. Their prices are now, in the same order, 8,800 and 6,650 Kip per share. The trading volume of both stocks eased slightly upward, enlarging their turnovers by 64% (EDL-Gen) and by 13% (BCEL).
Rice traders set to lose as prices take a dive: Rice traders around the country are losing profits after buying rice stocks at high prices in November and December only to see prices nosedive recently. The main reason for the fall in rice prices is a government ban placed on rice exports after local people were affected by high prices last year. The cost of rice in the north of the country may be even lower because rice farmers are unable to export their crops to Vietnam and China as they usually do.
EDL powers up economic foundation: Electricite du Laos (EDL) has played a greater role in the development of the Lao economy thanks to support and close supervision from the Party and government, according to the director of the state-owned enterprise. He said over the past five years the electricity industry in Laos has grown rapidly, adding that at present there are 14 power plants with a total installed production capacity of 2,558 megawatts (MW), up from 9 power plants with an installed capacity of 680 MW. The nation's power plants are able to generate 11,000 million kWh of power a year.
2. The Lao Securities Exchange
The Lao stock market
EDL-Gen has been generating much more volume than last week: a total of 1.04 million shares from Monday through Wednesday, which were already higher than the combined volume of last week. EDL-Gen has not posted large price changes over one month (positive 1.5% change compared to 23rd Feb), thus the larger volume could be the sign of new capitals flowing into the Lao market; perhaps the fundamental investors have finally taken their actions. As BCEL rallied to 8,800 Kip per share, the market recorded a much larger demanding surplus (6.4 times higher) on this stock compared to yesterday, in the face of withering supplying surpluses (down by 64%). The apparent market data suggested that there should be a supportive zone holding BCEL up in the last two trading days of this week.
The LSX Index 1,348.41 +12.35 [+0.92%]
The rising stocks had a positive impact on the Lao securities market, returning 12.35 points to the LSX index. The appealing stocks price also lubricated the market liquidity to almost 447 thousand shares, equivalent to a 53% increase. The combined trading value reached 3.1 billion Kip.
Lanexang securities
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