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All the “technical indicators” point to a stock price rally
Landlocked stock market prices remained unchanged as a 4 day volumes rally continued. Volumes are always a good indicator things are changing. This week the past 3 days have seen invigorated volumes trading. The prices have remained on a very level playing field and very much unchanged, indicating a breakout rally is long overdue. All the “technical indicators” in today's chart for Jan. 1 to Feb. 1 support our sentiment for a price breakout rally.
The Lunar New Year holidays and festivities throughout Asia disrupted trading at the Lao LSX with lower turnover.
However not deterred, this past week has seen renewed interest and good volumes, especially from EDL-Gen.
In January the Lao LSX Stock Market index recovered 39 points, when it moved from 898.35 points, in 21 days of trading, to close on Jan. 31 at 936.81 points - a monthly gain of 4.28 percent.
Total shares traded over the index for the month of January was 711K shares, with daily volumes averaging 33.9K shares. Yesterday's share stock trades were 83K greater than January's daily average and turnover yesterday exceeded the January daily average by 250 percent at just over US$71. EDL-Gen is finally on the right side of the ledger at 4,450 kip, but further improvement is warranted.
However, somehow the daily volumes see EDL-Gen and BCEL reappear, all very much unchanged prices at what look as bargain short term.
Early trading yesterday saw very good volumes for the 4th day, but EDL-Gen gave up the high ground, losing 50 kip and retracing to 4,400 kip. But by the close it rallied back to 4,450 kip and has good prospects to rally higher.
BCEL found support as it regained, erasing the previous day's loss, up 50 kip to close at 7,000 kip.
EDL-Gen took charge of trading in January with a monthly turnover of 584K (US$313K) and daily volumes of 28K (US$15K). EDL's volumes represented a mighty 82.19 percent of market share and 74 percent of the market's turnover.
vientiane times
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