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Thai firm advises on stock market trading
A Thai financial adviser is helping Lao business operators and government officials to better understand the investment opportunities provided by stock markets.
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| Ms Vatthana Dalaloy ( fourth left ) stands with Mr Dethphouvang Mounlarat ( third left ) and Mr Somphob Sakpanpanom ( second left ) at yesterday's seminar. |
Asset Pro Management Co Ltd yesterday teamed up with the Lao Securities Exchange to give a seminar in Vientiane on how to make smart investments in the stock market. They also advised on the use of software programmes that make investment decision-making easier.
Lao Securities and Exchange Commission Office Secretary General Ms Vatthana Dalaloy, Lao Securities Exchange Chairman and CEO Mr Dethphouvang Mounlarat, Asset Pro Management CEO Mr Somphob Sakpanpanom and about 50 representatives of business, government and non government bodies attended the seminar.
The speakers made the point th at investing in the stock market was very different from gambling. Potential investors must learn about the macro-economy, industry, and the business performance of listed companies before deciding to part with their money.
In comparison, gambling is based purely on luck because gamblers have no information on which to predict the outcome of their actions.
The speakers also gave a presentation on the eFin Smart Portal software programme, which they said enabled investors to make stock purchases and sales automatically, making trading easier.
They told seminar participants that because the price of stocks on the Lao Securities Exchange had dropped it was a good opportunity to buy in if they were confident that the Lao economy had a bright future. They also pointed out that the influx of foreign funding would drive Lao stock prices higher.
The Lao economy has seen remarkable growth in excess of 7.5 percent over the past five years and growth is expected to remain at this level in 2012, according to the World Bank. GDP growth is based mainly on mining and hydropower development.
Lao Securities Exchange officials said they hoped the seminar would help attendees to gain a better understanding of smart investment strategies and how to explore investment opportunities so they could make more trades.
Trading volume has been low in recent months. Stock market officials said Lao people in general had little knowledge of stock markets, and their lack of confidence in this form of investment kept the trading volume low.
The most active traders in the Lao stock market are the Chinese, Thai, Japanese and Vietnamese, but they purchase only EDL-Gen shares because the government does not allow foreigners to buy BCEL shares.
These are the only two companies listed on the Lao Securities Exchange. Yesterday BCEL shares stood at 6,300 kip, while EDL-Gen shares were trading for 4,350 kip.
According to the Lao Securities Exchange, on average about 160,000 shares were traded each day in 2011, which was less than the 200,000 share trades anticipated.
Stock market officials said a low trading volume was normal when a stock market first opened, and it would be a few years before Lao people became more familiar with stock market investment.
It is expected that three more companies - ETL, Indochina Group and Lao World Group – will list on the Lao Securities Exchange this year.
vientiane times
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