EDL-Gen irresistible share price rallies market

EDL-Gen irresistible share price rallies market

Trading volumes (400K) were the best since April-11 last year and the turnover (US$241K) was the best since mid December.

Investors as buyers certainly sprang into action yesterday in contrast to the previous 2 days in which as few as 387 EDL-Gen shares traded.

Volumes indicate a very bullish mood for the electricity stock and recent rallies all support a rising share price. A classic buy in opportunity existed if you could match an order with the seller. During the previous 11 days' closes EDL-Gen had averaged 4,950 kip. In yesterday's early opening “the shoe didn't fit” that sentiment for EDL-Gen as the stock remained down 300 kip compared to Friday

(-5.88 percent), at a very generous 4,800 kip. At 4,800 buyers went jockeying for positions for matching trades.

The first session yesterday saw few crumbs as 839 EDL-Gen shares traded for just 4 mil/kip; that was down 100 kip on the previous days close to 4,800 kip. As a result the index slipped (-16.96) to 987.62 points. Then right on cue buyers rallied to purchase EDL-Gen at great value. The EDL stocks surged to 130,000 trades (624 mil /kip) by the 9:30 close. Then another 160K + 50K voracious stocks matched in the next 2 sessions pushing turnover to 1.632 bil/kip (US$205,238).

BCEL after a strong close Monday 65.6K stocks, yesterday was unchanged at 6,500 kip.

ASEAN Exchanges: Every index fell intraday. Malaysia lost 6 points, Hanoi -0.98 percent, Jakarta -34 points, the Philippines 10 points (2 percent), Thai SET down -0.08 percent, Singapore -0.35 percent, Laos 17 points.

Currencies: The kip intraday was unchanged at 7,970kip /US$1, the AUD was at 8,080 but due to fall, the €uro fetched 10,525 kip /US$1 and the ¥en gained to 94.71 kip /US$1. The Thai Baht strengthened to 258.70 kip / US$1.

Dollar rallies as EU's PMI indices waver

The US dollar rallied on release of the Fed's minutes March 13, minus an unlikely QE3, saw the confirmation interest rates will stay near zero until late 2014. That then snowballed across FX markets and dragged markets down. EU cracks appear as Spain keeps trying to resurface the euro Zone debt crisis. EU's PMI indices figures released were lower than expected.

The US on Tuesday indexes got lost with minor falls as the DJIA intraday fell 12 points and finished down 62 points; the NASDAQ lost 6 points and the S&P500 5 points. European indexes also lost ground but China indexes had a rare day of gains with the Hang Seng up 268 points.

Asian equity markets remain confident at the moment if not bullish.

April is the market reporting season with a number of global mergers and acquisitions filtering through. IPO's in Hong Kong have been strong and a lot have been oversubscribed.

The AUD with a February trade deficit of AU$480 million versus forecast surplus AU$1.1 billion slipped to a new low US$1.0303 and looked like closing lower than that. Australian coal exports fell 16 percent whereas metals and ore exports rose 8 percent in February. PNA, PanAust (Phu Bia) lost 10 cents back to great value U$$3.12 (62 cents on the old scale) with good volumes 1.62m. Ord Resources touched 1 million stocks for a very cheap AU$0.028. Mt Gibson was at AU$1.11 on 2 million MGX shares – the stock could easily rebound to AU$1.80 but patience is required. Wesfarmers always has good dividends, WES was good value at AU$29.81. Newsat rose to AU$0.61 on low volumes 55K.

Following Australia's lead with a mining resources tax bill, Indonesia is now also mulling the contagion of an introduction of a new 25 percent export tax on coal and base metals.

Currencies: The €uro weakened to US$1.3226, but the Pound held at US$1.5889.

With large dollar reserves the Thai Baht strengthened to 30.89 as their index raced to a new 52WH of 1211 points.

Nymex oil fell to US$103, Brent lost US$1-00 to US$124 and Gold down US$30 to US$1646. Silver was down to US$32.32.

US indexes all had minor falls as treasury yields put on small gains. Copper prices were softer at US$8,616/tn, and Nickel was a loser as it dipped 8 percent for the week to US$18,754.

vientiane times