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27/04: Daily updates of the Lao Securities Exchange
1. Executive Summary
The Lao Securities Exchange: The Lao stock market bristled at the two listed companies for biting unceasingly on their meager prices. The leftover BCEL was sold at 8,300 Kip per share, down by 1.19 percent. EDL-Gen does not look very appealing to investor’s appetite anymore, but exchanges were still carrying on for 6,600 Kip per share. EDL-Gen bolstered its turnover threefold to 639 million Kip, while BCEL was clumsily bagging its 515 million Kip, up by 43 percent.
Laos losing out to land concessions: More than 50% of land concessions granted for investment projects have resulted in detrimental impacts on Laos. There are currently more than 2,000 land concession projects nationwide, but many are ineffective. Many investors sign contracts for a land concession with the intention of selling the project to other investors.
New Hydro project powers up Vientiane province: The Namsong hydropower project in Vientiane province expects to produce 13.5GWh per year for the local area when it becomes operational. The project is a joint venture between India's Ministry of Water Resources and Electricite du Laos (EDL) and is being financed with the US$11 million grant from the Indian government.
Lao civil aviation, Japan plan new systems: Japanese authorities and aviation experts have begun the transition to a new communication, navigation, surveillance and air traffic management system in Cambodia, Laos and Vietnam. Adoption of the system will harmonize air control between the three countries. The project officially began in January this year and will be completed by the end of 2015.
2. The Lao Securities Exchange
The Lao stock market
BCEL has traded down 2.35% since Monday, but its volume has quickened the pace by 28 percent. The roundedoff 62,000 demanding shares were fully satisfied today, hinting at a temporary setback of the buy side. The average daily demands were 105,000 shares last week and about 88,000 shares over the last two days. Total BCEL demands are fading gradually over time but not yet to the critical level. The trading volume of EDL-Gen returned to 96,600 shares, of which 15% were foreign transactions. The foreign element plays a major role in EDL-Gen’s daily volume, comprising around 50% to 70% of everyday trades. Statistically, foreign investors have sold a net of 1.86 million shares in March and 1.92 million shares in April (up to the current date), which has a combined worth of 25.13 billion Kip or 41% of total EDL-Gen’s turnover in the same period. The majority of these foreign investors are Thai, Vietnamese, Korean, and Japanese.
The LSX Index 1,326.82 -11.03 [-0.82%]
Approximately 159,000 shares were exchanged today, fueling the market turnover up to 1,154 million Kip, almost twice as much as yesterday. However the resurgent volume could not shake the LSX back to its former self. The Lao index has drifted down to 1,326.82 points, equivalent to a 2% drop since the beginning of the week.
lanexang securities
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