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05/05: Daily updates of the Lao Securities Exchange
1. Executive Summary
The Lao Securities Exchange: The wind of change is approaching as the listed bank steps on its all-time low 8,000 Kip. The nostalgic BCEL realized it just made a complete circle, however things are not exactly the way they were 4 months ago. Trading volume has obviously reduced by a significant amount, and the loss of investors’ confidence is unjustifiable. EDL-Gen is in a much better shape, just for the sake of comparison. The electricity company lingers inside the area 40% to 50% above its lowest price. Today, it slides back to 6,600 Kip, equivalent to a loss of 50 Kip.
Farmers hope to bring animal breeding closer to home: Lao farmers spend millions of dollars each year to import fingerlings, piglets, chickens and animal feed, but the Lao Agro-processing Association is hoping to change this situation. In order to ease the imports needs, the association has asked the government to seek international funding, in the form of low interest loans, for a project to produce fish fingerlings, piglets, chickens and animal feed in Laos. According to the Livestock and Fisheries Department, by 2015 Laos will be producing sufficient fish and animal feed to supply 70 percent of the domestic market.
EDL forecasts decreased import of electricity after 2013: The Electricite du Lao (EDL) has forecasted that electricity import will decrease after 2013. The number of power plants has increased from 9 in 2006 to 14 last year. Meanwhile, bringing the country’s installed capacity from 680 MW four years ago to 2,558 MW last year. In the next few years, EDL will be focusing on increasing electricity production to ensure sufficient provision of electricity to 80% of households by 2015.
2. The Lao Securities Exchange
The Lao stock market
During the peak time, BCEL could climb as high as 160% above its IPO’s price; but now it’s looking at only 36 percent. Investors were amazed at the speed BCEL was growing, and not worried about the after-effect of such an adrenaline rush. The situation at hand has called for careful and calm assessments. EDL-Gen has raised the red flag as well. Total demands plunged deep to 73,000 shares (down by 60%) without any surplus. It’s hard to determine where the spill-over effect has started, but both stocks are rowing on the same boat now.
The LSX Index 1,318.90 -13.67 [-1.03%]
The LSX retreated back to the 1,318.90 index points as both stocks lost sight of the track. The market grounded at the same 116,000 trading shares as yesterday, thus sharing the similar turnover of approximately 820 million Kip.
lanexang securities
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