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29/06: Daily updates of the Lao Securities Exchange
1. Executive Summary
The Lao Securities Exchange: The best thing to do in a sandstorm is waiting for it to subside, otherwise chance of losing senses of direction will be quite prominent; EDL-Gen seemed to be doing that very thing. The thunderous 5,200 Kip has certainly been raging for quite some times now. Even then, the company was still capable of releasing 39K shares (-53%) to catch the spilling LAK 203 million. On a different setting, BCEL lost its touch on the yesterday’s 8,100 Kip, and even started slipping from the recently attached 8,000 Kip (-1.23%). The diluting volume of 17K shares pulled the plug on turnover, exasperating it to only LAK 136 million (-48%).
Government retains presumptive tax system for SMEs
The government will continue to use the presumptive tax collection system despite the calls for abolishment from the National Assembly members. This informal method of tax collection opens up loopholes as officials commonly take bribes from small businesses to charge less tax. However the government cannot abolish the presumptive tax system since SMEs do not have proper accounting systems, making it impossible for officials to collect tax based on such records.
Mekong nations seek to bolster economic corridors
Initiatives to help the three priority transport links in the Greater Mekong Subregion (GMS) to become full-fledged economic corridors will top the agenda at the Third Economic Corridors Forum in Vientiane tomorrow. The three transport links are the North-South Economic Corridor, the East-West Economic Corridor, and the Southern Economic Corridor. Ministers and senior officials from Cambodia, China, Laos, Myanmar, Thailand and Vietnam, representatives from the private sector, and development partners will consider ways to further develop the corridors.
2. The Lao Securities Exchange
The Lao stock market
The foreign investors stomped heavily on BCEL and pushed most the bidding surplus to the 8,000 Kip. Total demand rallied 48% to 74K shares, signifying the soaring urge for the banking ownership; in response, the supply side precipitated apace to 29K shares (-53%) to maintain its firm standing. Ever since the unequivocally large trading on Monday, demand has been showing clearer motives for the banking stock, edging the company closer to a sustainable liquidity. The stationary EDL-Gen could not make any forward step due to the constant demand for its 5,200 Kip. The supply side does not seem ready to make any cheaper transaction; actually it was beeping fairly low vital signal today as evidenced in the 50K shares of total supply (-56%). Intuitively, the electricity company might squeeze into a trading bottleneck over the next two days.
The LSX Index 1,083.92 -2.64 [-0.24%]
The unsupported Lao index toddled backward to the Monday’s 1,084, equivalent to a loss of 24 basis points since yesterday. Both market’s liquidity and turnover slid on the same 51% downslope to 56K shares and LAK 339 million respectively.
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