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LSX increases trading sessions
The Lao Securities Exchange (LSX) has increased the number of its trading sessions, aiming to give more opportunities for investors to buy and sell stocks.
The stock market yesterday increased trading sessions from two to six per day, allowing local and foreign investors to trade stocks at 9, 9:30, 10, 10:30, 11 and 11:30 am. Previously trading sessions took place at 10 and 11:30 am.
Yesterday's total market turnover was 101,490 stocks for 694 million kip and the index closed at 913.79 points, dropping 2 percent. BCEL closed at 7,500 kip and EDL-Gen at 4,250 kip.
The increased number of trading sessions marks a new development in the joint venture by the Bank of the Lao PDR and Korea Exchange. The central bank provided building infrastructure for the market, while the Korean partner prov ided IT and expertise.
The LSX opened on October 10, 2010 and trading began on January 11, 2011.
The government hopes the stock market will provide more options for major businesses in Laos to access long-term investment funds. There are more than 20 commercial banks but most of them provide only short-term investment funds.
The government requires 127 trillion kip (US$15 billion) to achieve its aim of securing GDP growth of above eight percent per annum over the next five years. The listing of majority government owned businesses on the stock market is expected to contribute about US$8 billion, according to market officials.
EDL Generation raised more than US$100 million through the sale of 25 percent of its value to both domestic and international investors, while BCEL raised nearly US$20 million through the sale of shares accounting for 20 percent of its total value to domestic investors.
The bank also plans to sell a further 10 percent to foreign strategic business development partners.
The LSX hopes to provide online trading services at the end of this year or early next year. The market is negotiating with an internet provider to ensure a stable internet signal for the online service.
The LSX has announced that the stock market will be closed on Wednesday and Thursday this week as BCEL and the Lao Development Bank, which provide payment services, will be closed on these days.
The two banks will close because they are located in the area of Vientiane Boat Racing Festival activities. Police will close roads surrounding the festival to prevent traffic congestion.
The LSX was also closed on Friday to mark the 43rd anniversary of the establishment of the Bank of the Lao PDR.
vientiane times
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