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25/04: Daily updates of the Lao Securities Exchange
1. Executive Summary
The Lao Securities Exchange: The Lao Securities Market seemed to be searching for the four-leaf clover out in the jungle, but patience is running out. The volume of EDL-Gen could not help jumping on a free fall (down to approximately 73,000 shares) as its price caught a light wind (up 1.52% to 6,700 Kip). Stimulating demands lent BCEL a shoulder as this stock got close to the verge of breaking down. At the end, the listed bank was able to preserve its 8,500 Kip with just 48,300 shares. Turnovers for BCEL and EDL-Gen are 410 million and 487 million respectively; It’s not common to see these two figures lining up this close to each other in one day.
Domestic transportation costs spiral up: The cost of transporting goods in Laos has increased by 10 to 15 percent last month compared to the beginning of the year. Service fees and other product prices are also on the rise in Laos, posing a serious issue for the government. Laos imports more than it exports, resulting in a large trade deficit, mainly with Thailand. The prices of goods in Lao markets often go up when fuel prices rise or the Thai baht appreciates.
Draft development strategic plan for special and specific economic zone discussed: The National Management Committee for Special and Specific Economic Zone (NMCSSZ) has discussed a draft development strategic plan of special and specific economic zone for 2011-2020, at an ordinary meeting, in Vientiane Capital. The meeting’s goal is to determine the responsibilities and working mechanism of the NMCSSZ, and to approve some detailed proposals in association with the special and specific economic zone.
2. The Lao Securities Exchange
The Lao stock market
The liquidity of EDL-Gen took a dramatic swing today as selling expectation raised the stakes. Apparently, the lowest amount the sell side was willing to offer is 6,700 Kip; but the buy side was not ready to make that exchange. In the past, this is how it goes: the supply side would try to implant the idea that they will not make the sale unless the demand side plays their chasing games; consequently, total trades will take a dive. Eventually, the resistant demands usually win, and trades restore back to their frequent amount. We might see the same scenario for EDL-Gen this week. The glass wall surrounding BCEL is fogging up, making its price movement intriguing. Demands on BCEL have has not been way out of line, but they have been a little unstable. BCEL is definitely still in the dark clouds, searching the silver lining.
The LSX Index 1,348.88 +16.78 [+1.26%]
Total trades hit the low notes today with roughly 122,000 shares; and despite the out-of-synced volume, the Lao benchmark carried on its symphony with a 16.78 index-points gain. Total market turnover temporarily experienced a 63% retracement, down to only LAK 898 million.
lanexang securities
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