Laos stock market July 20
Laos stock market July 20
BCEL after three days of falls totaling 200 kip the banking stock in the 3rd call auction close at the halfway mark Friday recovered 50 kip but only on moderate 3,200 stocks. Then in the 5th session it surrendered that gain, to finish square at the close at 7,100 kip per share. Buyers are certainly not telegraphing their intentions and it's hard to comprehend sellers giving up the stocks at current prices, when they should hold out for the longer term.
Despite the large volumes building this week Fundamentals do not support selling at the present time without a price appreciation. Strong volumes existed for EDL-Gens accumulation at 4,650 kip unchanged on 76K stocks for a fourth straight day by the 1030 am close. By the close a nice rounded 100k had traded up 50 kip to 4,700 kip per share. That pushed the index up 8 points.
The local LSX stocks see the prices of both stocks represent great value, but in the longer period. No one is going to get rich overnight. BCEL has a solid base of customers, good growth and excellent market share. EDL-Gen has customers with insatiable demand for power and excellent forward earnings prospects. Both stocks are paying excellent ½ yearly dividends - better than bank interest. That makes them “blue chip” stocks to own. Both are insular in current conditions affecting global markets. If you do some research through the brokers newsletters you will note both stocks are about 50pct of forecasted strike prices. The message in the bottle is patience and start small but accumulate more stock at current prices.
vientiane times
