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09/06: Daily updates of the Lao Securities Exchange
1. Executive Summary
The Lao Securities Exchange
EDL-Gen chanted a battle cry from across the stock board, invoking a 3.74% price gain from 5,350 Kip to 5,550 Kip per share. The aspiring investors infused trading volume with 83K shares, arousing more than LAK 462 million (+127%) in turnover. While the generation company heated up its engagements, the public bank seemed too timid to charge forward. BCEL has lost the price momentum from 8,150 Kip to 8,100 Kip per share. Trading volume spread thinner to only 1,470 shares, grinding turnover into a bite-size LAK 12 million (-41%).
Government sets sights on economic growth of 8.5 percent
The government plans to achieve economic growth of more than 8.5% next fiscal year, with the industrial sector the main driving force. The government plans to achieve GDP of 69,927 billion kip (about US$8.6 billion) next fiscal year, about an 8.5% increase compared to the current fiscal year. Industry is expected to drive this growth, with major contribution from the mining, hydropower and processing sectors. The other driver of economic growth will be the services sector, including banking, transportation and tourism.
EDL cuts power tariffs on industrial charges
Electricité du Laos has reduced its electricity tariff rates against industrial operations to support the government’s efforts in boosting investments in industry. The state-owned enterprise has dropped its monthly electricity rates for industrial use since April by 1.3 percent from 599 kip per kWh to 591 kip. Major industries that use medium voltage electricity will benefit in particular from the new rates as they will now pay 502 kip per kWh instead of 509 kip.
The Lao Securities Exchange
The Lao stock market EDL-Gen suddenly felt the uncontained urges from within as its total demand thrust relentlessly to 133K shares (+40%). Since the very beginning, buying orders have already been stacking up to the ceiling price; the zealous demand only got stronger in the second session due to the combined forces from the foreign sector. Of course they did not expect easy surrender from the supply side. Total supply exploded from 45K shares to almost 147K shares (+226%), restraining the generation company from the ceiling price of 5,600 Kip. It was the second day in a row EDL-Gen received substantial boost in demand; the company is actually having a clear shot at restoration.
BCEL, on the other hand, has put a cap on its liquidity. Total demand trended up slightly to 26K shares (+7%) as supply insisted on a 36% decline from 5,476 shares to 3,505 shares. The supply side has dropped below the critical level, signifying its stubborn determination. The sources of demand are not abundant, but we can temporarily rest assured that BCEL will not plunge deeper than the current stage.
The LSX Index 1,145.06 +32.25 [+2.90%]
The Lao Composite Index got the call from EDL-Gen, and advanced quickly to 1,145 points (+2.90%). Total trades surged twofold from less than 41K shares to almost 85K shares; while market’s turnover broke free from the cage and roamed freely to LAK 474 million (+111%).
lanexang securities
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