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03/05: Daily updates of the Lao Securities Exchange
1. Executive Summary
The Lao Securities Exchange: The weather is always nice before the storm. BCEL can’t help but spreading its wing to the cool wind while it lasts, enjoying a 2.44% gain on its market price. The low trading volume presages the imminent downfall of the listed bank. EDL-Gen stepped back to 6,600 Kip, as volume filled up to 36,500 shares. The electricity generated a total turnover of 241 million Kip.
New Vientiane air cargo terminal complete: Construction of the New International Air Cargo Terminal at Wattay International Airport in Vientiane is complete and the building will open for service in June. The cargo terminal was designed by Japan's Azusa Sekkei Company, which supervised its construction from July 2010 to April 2011. The construction was funded by a loan from the Bank of Japan, which amounted to 9.6 billion kip with JALUX Company as guarantor.
Lao workers deserve better wages: Workers in various professions are working more than eight hours a day to earn extra money to cope with the rising cost of living. The lowest wage paid is less than 500,000 kip per month Many employers do not provide social welfare programs such as health insurance for their workers. The Trade Union will work to address the problems facing workers both in the public and private sector. There are 620,000 workers in Laos. Thirty percent of private sector employees and general workers have access to health insurance compared to almost 100 percent of public sector workers.
2. The Lao Securities Exchange
The Lao stock market
The sluggish EDL-Gen has been stagnating inside its comfort zone for as long as one cares to remember. The most inquisitive curiosity would try to understand why this electricity company always received a somewhat steady amount of trades until recently. Over the last two months, foreign investors have sold a net of 3.8 million shares (buy 4.8 million and sell 8.6 million) for 25.3 billion Kip. Domestic demands were on a par with foreign demands, meaning domestic investors are taking the dominating roles in keeping EDL-Gen alive. Foreign investors were the architects behind the EDL-Gen’s soar. The chance that this stock symbol can rise again is slim should the domestic investors take the leading position. The real disappointment is BCEL’s harsh trading volume, only 50 shares. The courteous buy was helplessly trying to push the bank forward, but the majority of demands see a different prospect as they require the price to drop down to 8,000 Kip.
The LSX Index 1,329.46 -3.11 [-0.23%]
Steady stocks trading are becoming increasingly onerous. Total volume cropped down to less than 37,000 shares, harvesting only 241 million Kip, which is 67% lower than last Friday. The Lao index cuts back to 1,329.46 points (down by 0.23%) as the drought draws longer.
lanexang securities
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