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BCEL loses 30 percent since Feb 1
The Lao LSX index appeared to open with a spring in its step, initially up by 17 points on Wednesday morning. Turnover in the first LSX sessions are always insignificant as an investor indicator, (US$53,513), but it was up and positive, albeit it just over 1 percent.
EDL.Gen dominated the first morning session. EDL.Gen jumped 1 cent during the first session and was up at US$0.85 (6,850 kip).
In the second session the index went south, losing all those gains and shedding 38 points to close down 21 points (-1.5 percent) for the day. EDL.
Gen lost 2 cents between yesterday's two sessions and closed the day at US$0.83 (6,700 kip).
BCEL share trades continue to confuse the market, but there were still some willing sellers who sold nearly 70,000 shares for a bargain US$1.34, down 6 cents for the day at 10,800 kip. The LSX index has closed in the red for two successive trading days and currently is sitting at its lowest level since January 24th. The daily volatility between 1 and 2 percent is becoming more manageable.
But for investors in BCEL concerns about this “bearish” stock must be rising as the stock has gone from 15,100 kip to 10,800 kip in a month - losing 30 percent. BCEL's volatility since Feb 1 has seen the price lose value in momentous volatility and has discarded 57 cents from US$1.92 to today's close of US$1.34.
Today's losing streak for BCEL gives investors little confidence it won't continue to go south. The previous gains late last week now look artificial. During the LSX first trading session yesterday Asian regional stocks all fell 1 to 2 percent, some more.
The Brent oil price yesterday rallied above US$100 a barrel with all the worry about “reigniting concerns” that higher oil prices (Energy costs) could dampen the global economic recovery.
VIENTIANE TIMES
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