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26/04: Daily updates of the Lao Securities Exchange
1. Executive Summary
The Lao Securities Exchange: The yesterday’s blue sky has turned grey for BCEL as this stock took a quiet step back to the 8,400 Kip. EDL-Gen also switched to the defensive mode as the trading volume fell harder to the ground (down by 37% to less than 76,000 shares). EDL-Gen generated 219 million Kip in turnover, giving BCEL a chance to surpass with roughly 360 million Kip.
Fuel prices adjusted upward again: The Ministry of Industry and Commerce last Friday has announced an increase in fuel prices for the eighth time this year. The government aims to use various measures in order to stabilize rising inflation. There were 14 fuel price adjustments by the ministry last year, 10 of which were increases, followed by 15 adjustments in 2009, of which 11 were price rises. However, there has not been any downward adjustment to fuel prices this year.
Silk textile receives Japanese grants: The Japanese government has provided Laos a financial package worth $US4.49 million to support the sustainable production of silk textile in rural areas, and the livelihood improvement for ethnic people. The fund is provided through the World Bank, and will be divided into two amounts to support two different goals.
A ferry port to connect Vientiane and Xayaboury provinces: Last Friday the two provinces signed a contract worth LAK 8 billion with a construction company to build a ferry port that will link these two provinces across the Mekong. Under the contract, a terminal will be built for boats plying the Mekong between Don village in Xanakham district, Vientiane province, and Vernkham village in Kaenthao district, Xayaboury province.
2. The Lao Securities Exchange
The Lao stock market
The BCEL’s supply side has been narrowing its gap with the demand side. Actually, the demand-supply gap has been positive since the beginning of April, but it has turned negative today as the supply side took the dominant role. However, the BCEL’s supply side has been fairly calm with their biddings; there is no apparent reason to get panic now. On the other side, the selling frenzy on EDL-Gen has eased of as the price got down to a more negotiable level. The drying liquidity also indicates the inclination to wait of investors.
The LSX Index 1,337.85 -11.03 [-0.82%]
The bursting volume of EDL-Gen has brought total trades lower than 76,000 shares. The downward stocks movements have also reflected a loss of 82 bps on the Lao Composite Index, casting this benchmark off to the 1,337.85 points. The market’s turnover reached 579 million Kip, a 36% downswing since yesterday.
lanexang securities
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