30/06: Daily updates of the Lao Securities Exchange

30/06: Daily updates of the Lao Securities Exchange

1. Executive Summary

The Lao Securities Exchange: The late blossoms of the Lao securities exchange emitted a pleasant aroma, hopefully bearing fruit of a sustainable market. The strong trading sessions, of 56.9K shares, have given rise to a new development for the public bank. BCEL ornamented its sparkling turnover, of LAK 458.3 million (+237%), with a minute price gain, from 8,000 Kip to 8,050 Kip. Slightly ahead, EDL-Gen finally stepped on its paddle and advanced onward to the 5,250 Kip. The company’s trading volume, unanticipated of the price jerk, could not catch up to the speed with such a weak thrust of 18.1K shares. As a result, turnover slowed significantly to only LAK 95.1 million (-53%).

Lao, Chinese investors plan hydropower plant in Savannakhet

Sun Paper Holding and Daosavanh Investment & Construction Group expect to complete their feasibility study on the Xelanong 1 hydropower project in Savannakhet province within the next 12 months. This project may be developed as either a medium or a large-scale project with a generating capacity from 80 to 100 megawatts (MW). The required investment is expected to be around 1.2 billion kip (US$150 million) and the Sun Paper Holding will be the main shareholder.

Breakthrough approaches aim to bolster investment

Private investments in Laos will get a major boost with the implementation of four newly approved ‘breakthrough’ measures. One of the measures focuses on a change in attitude. The remaining breakthrough approaches set out to simplify administrative procedures and management to facilitate foreign investment, create more job opportunities, and to reduce poverty, which is prevalent in about 20 percent of households. The government had already put some of the breakthrough measures into practice.

2. The Lao Securities Exchange

The Lao stock market

Both companies simultaneously launched their rallies during the last minutes of the first session. Once deployed, blocks of latent demands quickly encircled the 8,050 Kip of the public bank and the 5,250 Kip of the electricity company. The supply sides then wasted no time to bombard these protective structures. However, chunks of demands still remained after the closing-bell’s tolls. The total amount of biddings for EDL-Gen reached 81.6K shares (-19%), including a surplus of 63.5K shares (+3%). The corresponding figures for BCEL were 80.7K shares (+9%) and 23.7K shares (-59%). Both stocks apparently embraced their recent purchasing inclinations with two different philosophies; the suppliers of BCEL could not wait to dump their shares, while those of EDL-Gen waited it out. There is no denying that demanding forces have been flourishing, but the suppliers should give the market some coping times.

The LSX Index 1,093.63 +9.71 [+0.90%]

The banking stock took the liberty of watering most of the market’s liquidity, moistening it to 75K shares (+34%). Turnover soared beyond LAK 553.3 million (+63%) as the Lao index edged closer to 1,094 points.

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