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22/04: Daily updates of the Lao Securities Exchange
1. Executive Summary
The Lao Securities Exchange: The composite index pointed South again as both listed stocks took their little detour. BCEL went astray by 58 bps, dragging its market price down to 8,500 Kip. EDL-Gen slipped from the previous 6,650 Kip down to 6,600 Kip. BCEL could barely dig out a turnover of 352 million Kip, while EDL-Gen sat comfortably on its 2,046 million Kip. Weekly change: The market closed down 20 bps compared to last Friday. Total volume surged 43% to almost 1,259,000 shares, but last week was fairly short with only two trading days. EDL-Gen contributed to roughly 86% of all trades this week. The combined turnover reached LAK 8.67 billion, engraving a 48% increase.
- Champassak seeks funding to set up rice stockpile: Champassak province has asked the government for 30.12 billion Kip to set up a rice stockpile that would enable authorities maintain stable rice prices at times when they would normally peak. The government already approved a new funding package of 50 billion Kip to expand the rice stockpile project to more provinces in Laos. The stockpile project aims to secure rice prices for farmers while ensuring food security in the country, as well as helping consumers cope with high rice prices.
- Lower Mekong countries take prior consultation on Sayaboury project: The four members of the Mekong River Commission (MRC), Laos, Cambodia, Thailand and Vietnam joined together at the MRC Joint Committee (JC) Special Session in Vientiane to discuss the proposed Sayaboury hydropower project, the first on the mainstream of the lower Mekong Basin. The dam has an installed capacity of 1,260 MW with a dam 810 m long and 32 m high, a reservoir area of 49km2, and live storage of 225Mm3.
2. The Lao Securities Exchange
The Lao stock market
EDL-Gen stole the today headline as its volume returned to the 300 thousand unit level. Large amount of selling almost punched a hole in the shaky 6,600 Kip; but the supplies side did not seem to be pushing as hard as before. The past two months have carved into the general public the idea that EDL-Gen will not increase its current market value. We suspect that certain level of IPO shares is willing to materialize their gains as long as EDL-Gen stayed around the current level. BCEL took a defensive stance to restore its poor liquidity. The current trades are hinting to the fact that fresh capitals haven’t taken their interest in the Lao Securities market just yet.
The LSX Index 1,332.10 -9.71 [-0.72%]
The Lao Composite Index tumbled 72 bps, folding backward to the 1,332.10 points. The market generated almost 351,000 shares in trading volume, which is the highest figure this week. As a consolation, market turnover increased by 60% to nearly 2,399 million Kip.
lanexang securities
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