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16/06: Daily updates of the Lao Securities Exchange
1. Executive Summary
The Lao Securities Exchange The wind of change has once again turned the tide on the Lao securities exchange. The market rallied as EDL-Gen blazed to 5,300 Kip (+3.92%). Compared to yesterday, its trading volume spiked fifteen times as high to almost 29K shares, helping turnover pierce through the LAK 152 million. BCEL has been clinging to the same price since Monday. Today the bank only rooted deeper to the 8,150 Kip; Its meager volume worsened to 7K shares (-19%), weakening turnover further to LAK 58 million.
Farmers to grow leucaena for animal feed
Lao Agro 2000 Company will join forces with the Bio-Energy Development Company of Thailand to promote the cultivation of leucaena (ton kathin) trees in Laos to supply the companies for the manufacture of animal feed and production of renewable energy. Lao Agro 2000 will encourage farmers to grow 3,000 hectares of leucaena in Vientiane province and capital by 2015 – a major increase from the current 500 hectares. Leucaena is a bean family crop and is used for animal feed and as a renewable energy source.
Hydro plant set to power up Huaphan
The Nam Sim Power Company signed agreements with the Ministry of Planning and Investment Ministry and Electricite du Laos (EDL) on Monday in Vientiane to develop the Nam Sim hydropower plant in Huaphan province and a power purchase agreement with EDL. The project will cost about 144 billion kip (US$18 million) and will be owned by the company for 25 years. The plant will have two Francis turbines with capacity of 9 MW each. The generated electricity will be transferred through a distant of 5km via a 22kV transmission line to the EDL grid.
2. The Lao Securities Exchange
The Lao stock market
The price chart of BCEL has completely gone flat amid the diminishing trades. The bank’s weekly volume is now averaging out to 22K shares per day, which is still a relief from last week’s 14K shares. Today demand continued to bear South from 22K shares to 15K shares (-31%). The suppliers gestured a slight disappointment, reducing from 41K share to 32K shares (-23%). These indications do not necessary hint to an imminent price fall on the public bank, however they do points to an unavoidably poor liquidity. We can expect that much for tomorrow.
On the other hand, EDL-Gen has been projecting on a more bizarre path as its trading volume has showed no consistency whatsoever. The amount of trades can quickly reduce to nothing and then rebound vigorously. The resilient trades made it difficult to forecast the next movements. Total demand surged upward to 87K shares (+402%) as supply eased down to 29K shares (-44%). The generation might enjoy a slight appreciation tomorrow however it will be short-lived.
The LSX Index 1,104.06 +33.57 [+0.75%]
The EDL-Gen’s rally has tranquilized the yesterday’s agitation and helped the Lao index get back to 1,104 points. Total trading volume splashed toward 36K shares (+236%) as turnover approached the LAK 210 million (+159%).
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