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LSX debut year's trading ends today: BCEL gains 3½ percent
Today completes another successful milestone in Laos, with the completion of the first full fiscal year's trading at the LSX Stock Market Exchange, headquartered in Vientiane.
The ying yang emerged between small to medium investors yesterday, but on repetitively low volumes. BCEL headed north up + 0.036 percent on fewer than 244 shares (US$221).
EDL-Gen went south down -0.035 percent and dragged the Lao LSX index down –2.29 percent from 911.52 on Friday's close to today's close 890.66.
Hypothetically, for the index to “break even” at 1,000 points for the year's close today, would require a share price rally. EDL-Gen - the market “heavy weight” for example - would a have rally and reach a share price of at least 4,800 kip (+500 kip or 12 percent). BCEL alternatively would a have rally and reach a share price of at least 11,500 (+45 percent) or any combination in between. Both scenarios are highly unlikely – but in markets anything is possible but not today.
Opinions will always differ but research based on fundamental and technical analysis shows that both stocks look great long term propositions. The time certainly looks ripe, as a good time exists for you, to consult your broker before investing. Then it becomes a matter of personal preference as to whether you buy 50/50 of both stocks, or whether you like BCEL ahead of EDL-Gen or vice versa. Remember to do your homework, as nothing is guaranteed.
Both stocks have different “long term investment” appeal. BCEL has a sizable but improving commercial banking profit, with a dividend to be announced. EDL-Gen has been on the receiving end of some great EDL JVPs which will benefit EDL-Gen's oligopoly electricity supply grid and it too has to announce its second half yearly dividend.
Our preferred methodology is unchanged, using small accumulation parcels to acquire either of the current Lao listed stocks, at regular intervals, using “a dollar cost average”. That method is a longtime established technique, which can assist you to enter markets, with less volatility (risk) and in an orderly manner to build a portfolio.
• The first session saw minimal interest with only a carry over trade of 98 EDL-Gen shares, unchanged at 4,300 kip, for a total of 421,400 kip (US$52.65).
• The second close presents a surprising negative picture. On just 200 stocks the index lost a massive 26.39 points as EDL-Gen lost 150 kip falling back to 4,150 kip. 1,251,400 kip (US$156.42).
• As at the 10:30AM close only 542 shares in total had changed hands. BCEL made its first appearance in that session as it gained 250 kip to 7250 kip. That helped the index move back 5.5 points but still a negative (-20.86) 890.66 points. On such low volumes investors need to be wary, as low volumes are no indicator and somebody could be foxing a false position, hoping other investors will follow their false lead, so they can make a profit.
• Things picked up in the 11AM close with 20K shares crossing. Turnover rose to 86 million kip (US$10,753) for 20,542 stocks.
• The sizzle went out in the last session but another 2,500 stocks crossed to make the day's total a small but respectable 23,034 shares for US$12,050, but the index remained negative as it lost 0.023 percent.
Please note all charts are “intraday” and on occasions some sections can reflect the previous day's and can also be before the close of the current day's trading. As such we recommend investors always check with a second resource or their broker before investing.
vientiane times
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