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24/03: Daily updates of the Lao Securities Exchange
1. Executive Summary
The Lao Securities Exchange: BCEL has been riding on some moody swings since early March. BCEL is now valued at 9,000 Kip per share, an increase of 2.27% from the yesterday closing price. The trading volume on this stock has also been smoldering up gradually, reaching roughly 79,000 shares today. On the other hand, the price chart of EDL-Gen has nearly gone flat if we look through the 2-months scope. EDL-Gen closed at 6,650 Kip per share for the third time this week; however the trading magnitude has been shortening quickly, down to almost 155,000 shares (-60%) today. The turnover for BCEL and EDL-Gen are, in that order, 0.71 and 1.02 both in billion Kip.
Indian mineral developer expects to intensify investments: The first Indian mining company in Laos, Lao SPG CMC Mining Co Ltd, plans to increase its investments to 281 billion kip (US$35 million) over the next few years, pumping more funds into its potash project in Xaythany district, Vientiane, and barite project in Kasy district, Vientiane province. As soon as the government approves the funding, these two projects will receive 200 billion kip (US$25 million).
AGL looks to the next twenty years: AGL is a joint venture between the Lao government and Allianz International which is a member of Allianz group - one of the world's biggest insurance companies. Building on its success over the last 20 years, Allianz General Laos (AGL) will soon be offering insurance services for all individuals and corporations across Laos. AGL is today the nation's leading provider of insurance products tailored to service the specific needs and demands of both individual and corporate clients.
2. The Lao Securities Exchange
The Lao stock market
EDL-Gen encountered fairly strong selling pressure today, and almost gave in. Its price went down to 6,550 Kip in the first session, and did go down to 6,350 Kip before the second execution time. However, the demanding forces weaved a-large-enough net to catch EDL-Gen on the fall, pushing it back up to the base price by the end of the second session. The sell side of EDL-Gen has apparently lost its patience card, as the stock price kept flipping the same page. On the positive side, the demanding net should still be able to sustain the current price. The recent BCEL’s disposition was caused mostly by the low trading volumes. This bank still locked away the foreigner elements, pressuring the incentives to invest in the shares. BCEL tried another run for the tunnel’s end; however the difference is that demands are building up fairly slowly, but more sustainably.
The LSX Index 1,353.69 +5.28 [+0.39%]
The Lao Composite index rallied by 39 basis points as BCEL persisted its upward movement. However, almost half of the yesterday trading volume got melted down as EDL-Gen kept rubbing on the same price. Total market turnover reached 1.7 billion Kip, equivalent to only 46% of the yesterday amount.
lanexang securities
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