LSX readies for 3 more IPO listings

LSX readies for 3 more IPO listings

The Lao stock market has remained staunchly in a flatline in “prices” but volumes are still incredibly emerging without any associated price volatility.

A late jump by BCEL was the first major movement in a quarter, albeit a small rise. Investors saw the banking stock bounce 300 kip in the closing session on Friday. After being down to 7,450 kip on low volumes, the stock jumped by 4 percent (300 kip) to close the day at 7750 kip. It was BCEL's best price since August 4. Should investors rally behind Friday's closing lead from BCEL, the banking and EDL.Gen stock may enjoy a small increase this week.

November - December could see a spark in the local stock market exchange with two more listings on the cards for 2011 and one for early 2012. Scheduled to list by the end of the year are Enterprise of Telecommunications Lao (ETL) and Lao Development Bank (LDB).

Local cassava powder producer, Lao Indochina Group Co Ltd (LIG), expects to list on the Lao Securities Exchange by early next year, with Lanexang Securities Company helping with the IPO for public listing. LIG operates cassava plantations in Borikhamxay and Vientiane provinces and in Vientiane on a total area expected to reach near 10,500 hectares, with the company employing more than 1,220 families.

• Global stock markets turned in April this year with big losses. The bears have been around ever since. In August daily swings made it impossible to predict markets. Since Oct 3 there has been a recovery but that is erratic due to the EU debt crisis. It hasn't been an exciting time for US investors when you take the numbers from last week's finish which saw the Dow stock market index up 164.30 points, or 1.4 percent, while the S&P 500 is up 13.67 points, or 1.1 percent and the Nasdaq is down 30.39, or 1.1 percent. For the year to date things look very boring: The Dow for example was up a mere 2 percent and the S&P 500 down 1.5 percent with the Nasdaq down 0.6 percent.

• A broad rally swept through the US stock market last Friday after McDonald's and several other large companies reported solid earnings. That should confidently open this week's markets, but the storm clouds still hang over markets. The EU IMF G-20 summits which, despite this weekend's “agreements”, could rock the boat, as things will remain drawn out until November 4. Until then any quiver of bad news will send markets into a nosedive.

vientiane times