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23/06: Daily updates of the Lao Securities Exchange
1. Executive Summary
The Lao Securities Exchange
The two listed companies engaged in their own price battle, and they both ended up with a tie no matter what strategy they used. Market’s liquidity receded slightly; at least it was not as lopsided as yesterday. Market’s sales split more evenly between the two companies: 37K shares (+48%) for BCEL and a 43K shares (-58%) for EDL-Gen. Their prices stayed the same, hence their turnovers changed accordingly to LAK 299 million and to LAK 223 million respectively for the public bank and for the generation company.
Xepon rubber project gets green light
The Guangda-Lao Company this year plans to grow 800 hectares of rubber in Xepon district, Savannakhet province, after the government approved a 1,000 hectare land concession in 2010. The project has already cost about 24 billion kip (about US$3 million) out of the projected 40 billion kip (US$5 million). The company has begun to grow some rubber trees this wet season and plans to open the processing plant in the next six to seven years.
Lao, Thai hydropower developers ink construction deal
Electricite du Laos (EDL) signed an engineering procurement and construction contract for the Nam Sana hydropower project with Nawarat Patanakarn Public Company Limited of Thailand. EDL's investment in the project is about 241 billion kip (US$30 million). Commercial operation of the power station is expected to begin in early 2014. The plant will have a capacity of 14 megawatts (MW) with two turbines that will generate about 49.6GWh per year.
2. The Lao Securities Exchange
The Lao stock market
A relatively intense amount of demand infused the Lao stock market today, especially with the public bank. A total of 114K shares (+78%) were bidding for BCEL as the other company bathed in its 169K shares (+5%). The simmering demand emphasized a margin boost in confidence, even though most of the bidders were reluctant to raise the stakes. The foreign sentiment toward the generation company got somewhat emotional; actually, they were the main buying forces. Optimism seemed to start taking control. The suppliers of EDL-Gen cut their stocks down to 50K shares (-65%), while the BCEL’s counterpart got a little more excited with 46K shares (+72%). In general, the suppliers had already stopped their haggle by yesterday, now they just tried to make ends meet without hampering too much with the current price. This is the chance for buyers to get their hands on the listed companies if they have not done so.
The LSX Index 1,087.88 0.00 [0.00%]
The stagnant prices have cut all vitality flows and paralyzed the Lao index at the yesterday’s 1,087 points. Trading volume plunged 38% to almost 80K shares, slashing market’s turnover by 29% to LAK 523 million.
LANEXANG securities
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