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Belt tightening continues on LSX
The local stock market index worm has been ever so slow to respond but there is an upwards movement. Early trades were few and far between yesterday; by the close only 14.2K shares crossed as investors went on a belt tightening exercise.
Locally the market 2012 has remained at 52 week lows, but the bigger volumes at current prices, acquiring larger parcels remain challenging and elusive.
There is a lot of anticipation and speculation building as to when new stocks will feature (list) and what the market reaction will be.
Investors have resisted any wholesale sell off, preferring instead to accumulate, as one should in current conditions.
The volume bars started to fill out mid February, but then prices firmed and consolidated and that sent the volume bars into a sawtooth pattern, as matching orders have drifted further apart.
EDL-Gen The electricity power distributor is an oligopoly business and as such remains very insular to market volatility and also has huge commercial business advantage in Laos. Under 5,000 kip the stock as an investment has value written all over it. Whilst the released profit figures for EDL-Gen maybe small (compared to international stocks), the fact remains that company profits and revenues for EDL-Gen are growing, as too is their dividend. That's good news for the market and investors alike.
Your broker will also confirm the synopsis that investing in this stock it is better to expect your investment is for the longer term. That is, one can reasonably expect some positive moves (along with ½ yearly dividends) to occur over time in this stock.
vientiane times
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