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20/04: Daily updates of the Lao Securities Exchange
1. Executive Summary
The Lao Securities Exchange: The two stocks are not ready to snap out of their dreamy stage. The good news is they are not too far off the tracks. At least BCEL was able to walk straight on its 8,400 Kip, and EDL-Gen just enjoyed its normal up and down routine. The electricity company, not showing any concern for the 38% loss in volume, shrugged off the yesterday gains and returned to its former 6,600 Kip. Turnover for BCEL and EDL-Gen are now 380 million and 893 million Kip respectively.
- Canned goods producer raises export prices: Canned fruit and vegetable producer Lao Agro Industry Company (LAICO) will increase export prices by 15% to 20% this month due to the spiraling production costs, overhead, and fuel costs. The company's canned products are sold domestically and exported to the UK, France, Germany, Poland, Vietnam and Thailand.
- BCEL New Year cash flow up more than 150 percent: Banque pour le Commerce Exterieur (BCEL) has revealed that its cash flow during the Lao New Year holiday increased by more than 150 percent on the same period last year. Over the holiday period, people withdrew about 25 billion kip through the bank's ATM machines, up from about 10 billion kip last year. The increase reflects the strengthened economy of Laos also the current high costs of food and fuel.
2. The Lao Securities Exchange
The Lao stock market
Today’s sessions were trading on a typically low volume. EDL-Gen was playing its awkward game with only 135,000 shares splitting evenly in the two sessions. Total demands put up a 45% retracement sign, for not wanting to play this tiring game any longer, which is not surprising. But that’s how the game has been set up for EDL-Gen lately: demands keep fluctuating up and down erratically without any apparent reason. The trading volume on BCEL enlarged by 34% to more than 45,000 shares; however, the listed bank insisted to stand its ground at the 8,400 Kip. Total demands plunged 35% to 115,000 shares. Supplies also joined the general trend and knocked 12% off of the yesterday 98,600 shares. Overall, not much has changed since Monday; traders should observe more than taking actions in this stage.
The LSX Index 1,329.46 -16.78 [-1.25%]
When the stock current got dried up, the only direction left for the Lao benchmark is downward. The index subsides to the 1,329.46 points, equivalent to a loss of 1.25% or 16.78 index points. The market volume barely squeezes out 180,700 shares (254,000 shares yesterday), and is responsible for the 27% loss in market turnover, which is now only 1,273 million Kip.
lanexang securities
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