Lao people can own two major companies

Lao people can own two major companies

Lao people can be the owners of Electricite du Laos and Banque pour le Commerce Exterieur Lao, just buying the stocks from the first Lao Securities Exchange, scheduled for 11 January 2011.

Headquarter of Lao Securities Exchange

The two companies have prepared for the listing for trade in the Lao Securities Exchange in January 2011, according to yesterday press conference at the Lao Securities Exchange in Vientiane.

“The price of the two companies’ stocks will start at 5,000 kip,” said Mr Dethphouvong Mounrath, Chairman of the Lao Securities Exchange.

The press conference aimed to provide understanding on information of the investment in the two securities that will be available for sale to individuals and investors, which are the first proposal for the public, said the Acting Head of the Lao Securities Exchange and stock market Committee, Mrs Vatthana Daraloy.

However, the securities exchange is new in Laos, she continued. Mrs Vatthana further stated that in order to implement the sixth five-year socio-economic development plan (2006-2010) as well as the development plan of the capital market in Laos, a soft opening of the securities exchange market was held on 10, October 2010.

All customers wishing to trade securities can open an account in kip or dollar with the Lao Development Bank (LDB).

Customers should bring their passbook and ID card issued by the LDB to open an Securities Account and will receive a Securities Passbook.

Customers put the deposits into their account in the LDB and ask the LDB to transfer to the LXS account. LDB check accounts and makes a transfer between bank accounts. Bank send “Deposit into Securities account” message. The Securities firm [LXS] updates the deposit in securities account then send the “Message of Confirmation.”

Securities firm customer request the transfer to his/her bank account. Then, the Bank will send request. Securities Firm checks accounts and computes the withdrawable amount and securities firm sends responding message. Bank sends “Withdrawal Request” message. Securities Firm updates deposit in securities account and sends “Withdrawal Confirmation”. Then, bank makes a transfer between bank accounts. Finally, Bank processes the withdrawal.

After a customer opens an account with the LDB and a Securities account with Lane Xang Securities (LXS), customers can trade through the LXS company by giving order to the company (Broker) directly or by telephone, internet, mail to buy or sell stock of listed companies.

The company will provide financial and investment advice and consult customers� information related stock closely for maximum interest of customers.

The trading hour shall be from 08:30 to 11:30 am. However, they may be changed temporarily when the LXS deems that such changes are necessary for the market management, as in such cases as the computer system failures, etc.

Trade shall be executed two times a day, at 10:00 and 11:30. Bid/Ask price should be in the allowed rang (between the floor and ceiling price set by trading regulation) rang: +/-5% trading day. The first trading price of initially listed issue shall be within 90/100 of the public offering price.

KPL Lao News Agency