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December Index goes “W” shape with moderate recovery
Investing in stock markets is all about timing. If you are looking for the best market with the most potential for December, you would have to rank the Lao LSX stocks right up there, based on both fundamantals and valuations. BCEL Banking and EDL-Gen electricity distributors are right on track as both stocks offer potential growth at today's prices.
The LSX is working towards its objective to eventually have an online trading system on the internet. The LSX has called for expressions of interest on its website, for supply of a home trading system. That's seen as a very positive step to assist liquidity and will surely attract a lot of interest.
One never knows what to expect in terms of share volumes at the LSX, but the unmatched trades at the exchange do give keen investors some leads. Yesterday the index clearly went “W” shape signaling a strengthening of sentiment and a moderate recovery, so it's a good time to buy. For 5 straight months the local index has defied a stock price breakout rally, as the momentum and suspense continue to build.
Tuesday's volumes were 50 percent lower than the stock market's previous days opening sessions, but still good. By the halfway mark at the 10am close BCEL had lost 50 kip to 7550 and EDL-Gen recovered 50 kip up at 4,250 kip. That was enough to see the index gain 8 points to 916 points on good recorded volumes of 82,000 stocks for US$67.700. BCEL recovered with 1500 and 20,000 stocks respectively in the next two sessions at 7,600 kip. By the close the Index gained 1 percent to trade 129,319 stocks down 47 percent to Monday's close for US$110,315 - down 50 percent on the previous day's turnover. Only 4 trading days remain at the Lao exchange for 2011, which will be closed from December 28-30 and on Monday January 2.
vientiane times
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