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Lao: Stock traders call for more information
The Lao Securities Exchange is facing unusually low trading volumes, which can be put down to a lack of analytical information on listed companies, meaning stockholders see no reason to buy or sell stocks.
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| Stock traders at the Lao Securities Exchange. Investors say they need more information to make trading decisions. |
A number of people who hold BCEL and EDL.Gen shares have said they want the public companies and concerned sectors to disclose more information so they can make informed decisions about when to buy and sell off the stocks.
Stock traders at the Lao Securities Exchange. Investors say they need more information to make trading decisions.
“We have no reason to buy and sell stocks as w e have not received any analytical information,” said a shareholder who asked not to be identified, adding that most of the information posted on the websites of stockbrokers and public companies consists of general reports.
The shareholders made the comments in response to the unusually low trading volume at the Lao Securities Exchange over the past months, which is posing challenges for the businesses run by brokers, as they derive their income from a percentage of the trading value.
Stockholders said they have found it difficult to understand the reports issued by the listed companies, adding that they were too general but at the same time very technical.
They also said they would like the companies and stockbrokers to highlight important information, particularly in relation to business performance such as revenue, expenditure, profit, debts, and any opportunities and challenges the companies are facing.
Many companies listed on overseas stock markets regularly update their shareholders on new events; for example, Pan Aust, the Australian company that owns a 90 percent share in the Laos-based Phu Bia Mining Company, always announces the discovery of new ore reserves, which enable the company to extend its mining life.
The company also announced the shutdown of its gold and copper operation in Laos due to heavy rainfall and landslides nearby its mining site, as this information was considered helpful for stockholders.
Stock experts said the Lao Securities Exchange Commission has established a regulation that all listed companies listed must disclose information on developments that may affect their business performance.
However, it will take some time for the companies to provide information of the same quality as that given out by companies in other countries as they are inexperienced in doing so.
A senior official at EDL.Gen told Vientiane Times recently the company is setting up a public relations unit to provide important information to shareholders, adding that it will take some time for the unit to function properly as staff have little experience in the work.
Stock experts said an increase in the amount of information and analytical comments from brokers will play an important role in encouraging people to buy and sell stocks, as it will boost their understanding of investment opportunities and risks.
An increased trading volume in the stock market will encourage companies to mobilise investment funds in the stock market in accordance with government policy and ensure the exchange runs profitably.
http://www.vientianetimes.org.la/sub-new/Business/Business_Stock.htm
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