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BCEL stock price hammered on very low volumes
The Exchange has traded around 241 days since its impressive debut on January 11and turned over US$37.7 million year to date (YTD).
Liquidity returned this past month but some days were very mixed with many successive days recording repetitive high and low volumes.
The most important thing for investors was that the index turnover/volumes “worm” trended up in the charts for the fourth straight month in December.
Investor versus speculator has seen prices locked in a tight trading band. The daily average volumes bounced back from 25K per day in August to 125K+ in December.
December volumes were 70 percent+ up on November's close of 1.56 million shares. The number that really impressed this month was the 52 percent monthly turnaround as at Monday, which was a gain month to month of almost +US$1.9 million.
Investors have been left squeezing their knuckles for a price rally. The index is stuck at support levels of around 910 points. But often the index is not a true indicator and has been driven down on insignificant volumes of 20K to 8K or less.
Following a pattern that has existed for the last 4 months, the BCEL share price in December hovered around 7,600 kip and EDL-Gen at a ridiculously low 4,250 kip.
There is nothing to support either stock at those low prices, when using financial economic data (Fundamentals). In turn everything supports that a price rally is warranted, but sentiment obstinately resists that logic.
Yesterday's trading highlighted some very inexperienced trades.
3,000 EDL-Gen shares were traded for a very cheap 4,200 kip.
Some buyers must have thought Santa Claus arrived when BCEL nose-dived without any foundation to 7.250 kip - its lowest point since September 13. BCEL stock went ex-dividend on December 26, but that doesn't warrant a selloff, because its intrinsic value is seen to be well above yesterday's close.
The bank's stock price suffered as its price has fallen by 350 kip on the last two successive days, at the hands of 5,660 immature trades. That move on small volumes caused the index to drop below the 900 points, but it will quickly recover in the New Year.
vientiane times
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