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Official: Slow trades on LSX due to global economic climate
A senior executive at the Lao Securities Exchange (LSX) has said slow trading on the exchange is due to the downward trend in world markets.
In a recent news conference, LSX Chairman and CEO Mr Dethphouvang Mounlarat said that now would be a good time for long term investors to buy into stocks.
The news conference took place at the Bank of the Lao PDR in the wake of slow trading in both EDL-Gen and BCEL stock compared with the exchange's opening weeks of trade.
“There is no crisis at the Lao Securities Exchange; this situation is normal in the current global economic climate,” said Mr Dethphouvang.
The global economy had been affected by the world stock market, which has had a knock-on effect on the Lao market because many investors are foreign, he added.
However, he said, the Lao economy is continually growing and is on course with government plans.
Currently, the EDL-Gen share price is fluctuating between 4,100 and 4,200 kip while the BCEL share price is between 7,800 and 8000 kip.
The volume of trading is also down compared to the beginning of the year, again, because most investors are foreign, said Mr Dethphouvang.
He said the current circumstances are favourable for the long term investor, but might not favour short term investors because share prices are relatively stable. He also advised investors to make decisions based on the best possible information.
The LSX is in a good position because the business outputs of both listed companies, BCEL and EDL-Gen, are trending upwards, he added. EDL-Gen's third quarter profit increased compared to the previous quarter because of the abundance of water boosting power production and exports.
Mr Dethphouvang also said he believes more investors will enter the market. At present, the number of investors is gradually increasing which shows the Lao securities exchange has a bright future and the confidence of investors.
Work on the Lao Securities Exchange began in 2007, through cooperation between the Lao government that owns a 51 percent share and a Korean company that owns 49 percent. Its primary market opened on October 10 last year and the secondary market for public trading started on January 11.
At present, two state enterprises, EDL Generation (EDL-Gen) and BCEL bank (BCEL) are listed on the LSX, whose shares are sold only through two brokers, Lane Xang Securities Public Company and BCEL-KT Securities Limited.
vientiane times
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