|
21/04: Daily updates of the Lao Securities Exchange
1. Executive Summary
The Lao Securities Exchange: Positive stock movements have returned to the Lao Securities Exchange; however liquidity problems seemed to be lurking underneath the surface. BCEL was fed with an abnormally low volume, but it does not stop the company from gaining 150 Kip. EDL-Gen received more than double the yesterday’s volume, which is the thrusting force behind the company’s 50 Kip gain. BCEL slashed off its turnover by 84%, down to only 62 million Kip; while EDL-Gen hinged around the 1,440 million Kip.
- Hydropower developers, bank ink finance deal: The China Development Bank will provide funds or loans for the 7 hydropower plants to be built on the Nam Ou River in Phongsaly and Luang Prabang provinces. The project is estimated to cost over 16 trillion kip (US$2 billion). EDL will hold 15% share and Sino will hold the other 85 percent. The generated electricity will be sold to the EDL power grid to supply the local market and for export to Thailand, Vietnam and China.
- Australian firms to resume gold exploration in Vientiane: Aurum Resources plans to invest about US$6.5 million to resume gold exploration activities in an area bordering Vientiane Capital and Vientiane province after the suspension in mid-2009. The company signed an agreement with another Australian company, Argonaut Overseas Investment, in Vientiane at the end of last month to take a majority interest in its Lao subsidiary, which holds the rights for gold exploration rights in a 226 square km area in Sangthong district, Vientiane, and Meun district, Vientiane province.
2. The Lao Securities Exchange
The Lao stock market
The trading volume of BCEL unexpectedly pounded down to under 10,000 shares; this is not uncharted ground for BCEL, it happened couple times before. Almost no transactions on BCEL were recorded in the first session, and the problems lies in the unwillingness of the supply side. Although the amount of demands on BCEL has slightly faded out, the bank showed no signs of immediate decline. EDL-Gen could no longer surprise investors with its predictable movements. The arrow is pointing upward for EDL-Gen but it does not mean the stock is going anywhere. The demanding force weaved a pretty sticky web at the 6,600 Kip, preventing EDL-Gen from either going up or down.
The LSX Index 1,341.81 +12.35 [+0.93%]
The rising stocks have generated 24% more trades for the Lao securities market, bringing the total volume to approximately 224,000 shares. More than 12 index points are restored to the Lao benchmark, pushing it back to the 1,341.81 points. Total market turnover reached 1,502 million Kip, which is 18% higher than yesterday.
lanexang securities
|
