Lao Stock Market: Stock price will be in allowed range of -10% to 100% in the 1st day

Lao Stock Market: Stock price will be in allowed range of -10% to 100% in the 1st day

(Vietstock) - Lao Securities Exchange (LSX) will officially begin trading on January 11, 2011, with the single matching method in two sessions and the settlement date of a transaction of T+2. For the first trading day of listed stock on 11th January, 2011; there will be only one session from 8:30-11:00 AM which means only one time execution at 11:00 AM and on that day, the price will be in allowed range of -10% to 100%.

* BCEL held the first Annual General Shareholders’ Meeting

I. Securities Trading Conduction of Foreign Investor

1. The foreign investor can buy stock of an issuing company or of the listed company in LSX which is approved by SECO

2. Buying stock of an issuing company or a listed company shall conduct as following holding ratio:

- One foreign individual or legal entity can buy or hold the stock of a listed company no rather than 3% of total amount of issued stock.

- The foreign delegation can buy or hold stock of a listed company no than 10% of the total amount of issued stock.

3. Foreign investors shall give trading order via telephone, fax, email, Online trading (next)..… of our securities company which will provide financial and investment advice and consult the investors information related stock closely.

II. Trading Rules

a. Bid/Ask price should be in the allowed (between the floor and ceiling price set by trading regulations) Range: +/- 5% / trading day

b. Method and Time of Trading

• Single Matching Method:

o Session 1: 8:30 – 10:00 AM 

o Session 2: 10:00 – 11:30 AM

(For the first trading day of listed stock (on 11th January, 2011). There will be only one session from 8:30-11:00 AM which means only one time execution at 11:00 AM and on that day, the price will be in allowed range of -10% to 100%)

 Order priority:

1. Price: lower offers and higher bids

2. Time

3. Volume

 Simultaneous orders: large quantity orders and earlier orders have higher priority

o A new Form is required if any mistake was made, no corrections is allowed on the Forms

o There’s no price range for bonds

o Investors are allowed to trade the same securities in different session on the same day.

- Settlement date of a transaction is T+2:

o Bid Order: If matched, the matched stocks will arrive to your account in two (2) days from the day of transaction.

o Ask Order: The money received from selling of stocks will be transferred to your account in two (2) days from the day of transaction.

1. Making Bid/Ask Stock Order

• Your Buy / Sell Order can only be entered into the LXS system when:

• Sell Order: You have enough stocks in the account.

• Buy Order: You have enough money for the transaction fee.

2. Cancel Order

• Canceling the buy/sell orders can be made in the same session but must be made before execution.

• To Cancel order, please fill out the Cancel Order Form

3.   Deciding Match Price

When all orders of one session are submitted, the price of stocks will be decided in accordance with the following priority:

i. Price priority

• Higher Bid price is executed first.

• Lower Ask price is executed first.

ii. Time priority

• Priority is given to the Buy/Sell Order made earlier with the same bid/ask price.

iii. Volume priority

• Priority is given to the higher volume Order if orders are made similar in time and price.

III. Regulation of Lao Securities Exchange

Trading day From Monday-Friday (Except public holidays of Laos, Last 3 business day of each year and when a sudden change in economic condition)

Market Division Stock  Bond

Trading time (Stocks and Bonds)

 From 8:30-11:30 AM, there are two sessions:

1. 8:30-10:00 AM

2. 10:00-11:30 AM

Trading method and rule 

• Single match price

• Investors are allowed to trade the same securities in different session on the same day

• Order priority

o Price: lower offers and higher bids

o Time: Order made earlier with the same bid/ask price.

o Volume: Higher volume order

Buying stock of an issuing company or a listed company shall conduct as following holding ratio:

- One foreign individual or legal entity can buy or hold the stock of a listed company no rather than 3% of total amount of issued stock.

- The foreign delegation can buy or hold stock of a listed company no than 10% of the total amount of issued stock.

Price fluctuation range Shares: -/+5% of the base price, in cases where the base price is less than 1,000 KIP the daily price change limit shall be 50 kip.

• The first trading price of initially listed issues shall be in allowed change within -10% and 100% of the public offering price.

Bonds: No requirement

(Exchange rate as of 07/01: 1 VND = 0.41335 kip; 1 USD = 8,134.95 kip)

Settlement method  Order matching transaction: Clearing payment T+2

 Trading volume 1 share ≤ Trading volume ≤ ∞

 Payment Clearing payment on T+2 day

Means of order submission  

1. Order submitted in writing

2. Order submitted over telephone, fax

E-mailing system and other similar method.

3. Order submitted by home trading system (if any).

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