LSX to increase trading sessions
The Lao Securities Exchange (LSX) will increase the number of trading sessions next month in a move aimed to boost trade values and turnover.
LSX Chairman and CEO Mr Dethphouvang Moularat announced this week that stock market call-auction sessions would increase from two a day at present to six a day from October 10, saying it is hoped the move will stimulate more people to buy and sell stocks.
The change will mark the first anniversary of the Lao-Korean joint venture exchange.
According to the announcement, the new trading sessions will take place at 9, 9:30, 10, 10:30, 11 and 11:30 am. At present sessions occur at 10 and 11:30 am. The LSX hopes that more trading sessions will not only offer more opportunities for people to buy and sell stocks but also increase market liquidity and facilitate growing demand from investors seeking to participate in the market.
M r Dethphouvang said the LSX is holding discussions with internet service providers to ensure sufficient internet speeds to enable the market to offer online trading at the end of this year or early next year.
Intermittent internet connections would cause big problems for investors seeking to buy or sell stocks at the optimal moment, he said.
Online trading would make it easier for investors to trade shares from their home or office. At present, investors have to use fax or telephone to issue buy and sell orders to their broker, while some have to go to the stock exchange to make trades.
Most securities markets in developed nations have used online trading for many decades, allowing investors around the world to post orders to buy and sell stocks.
Mr Dethphouvang said the LSX would continue to develop its services to meet international standards, including the introduction of a continuous trading system allowing investors to buy and sell stocks in real time. However, he was unable to give an exact timeframe for when such services would be introduced in Laos.
The Lao government decided last year to establish the stock market, to enable businesses to mobilise long-term investment funding for expansion and to encourage the public to participate in economic development.
The LSX is a joint venture between the Bank of the Lao PDR and the Korea Exchange. The central bank provides LSX infrastructure, while Korea provides technology and expertise.