24/01: Daily updates of the Lao Securities Exchange

24/01: Daily updates of the Lao Securities Exchange

1. Movements of the day

•  1st session, 8:30 – 10:00

Anticipating the current trends, investors unwaveringly step onward with their biddings again this week, pushing the prices of BCEL and EDL-Gen to an astounding 12,100 Kip and 6,400 Kip per share respectively. As of today, the price of BCEL’s shares enlarges by 500 Kip (4.31% gain), and EDL-Gen increase by 300 Kip (4.92%).

• 2nd session, 10:00 – 11:30

In the second session, both stock symbols maintain their current prices. The market saw a jump in trading volume from 134 thousands of the first session to 338 thousands. Total trading volume for BCEL has surged beyond what EDL-Gen can achieve for the third time in a row, indicating its increasingly better liquidity profile. However, the demanding pressures on EDLGen have not been alleviated, reaching a suffocating amount of 1.89 million shares.

2. The LSX Index

Robust demands are winding up the whole market. The LSX index gained 63.55 points today, equivalent to a 4.78% increase, pushing its current figure to a solid 1,393.54. The total transaction volume recovered over the weekend, reaching 338,309 shares at the end of the second sessions. Market turnover improved to 3.28 billion Kip, up from the 2.07 billion of last Friday.

3. Market Evaluation

EDL-Gen

Both EDL-Gen and BCEL can be considered the blue chip of the Lao stock market. The capital gains on EDL-Gen shares have not been as high as BCEL but they’re still impressive, almost 50%. EDL-Gen is still the main contributor of the LSX index for its significantly large Market Capitalization. As far as expectation, BCEL remains the most favorable stock symbol. The liquidity of EDL-Gen has slightly improved, however investors still face tremendous hardship trying to purchase EDL-Gen shares. Hopefully, this situation will be resolved quickly to ease up the heated demands.

BCEL

The market catches a glimpse of investors’ intentions by observing the trading volume fluctuation over a certain period of time. A strong signal was sent on the 18th when a flooding amount of investors purchased EDL-Gen and BCEL shares. Two days later, total trading volume for BCEL unexpected skyrocketed. Afterward, the trading volume of EDL-Gen continuously shrinks in size as the same figure for BCEL multiplies. BCEL might encounter some resistance on Thursday, but overall the price of BCEL will continue its climbing as the room for foreigners is expected to be extended soon.

Lanexang Securities