BCEL 2 percent rise in midweek rally
BCEL 2 percent rise in midweek rally
BCEL in a big “U Turn” recorded a stella day when it turned the tide August 15 gaining +150 kip with some excellent trades, finishing up 2.10pct, at its best closing price since Dec 26ths.
BCEL closed yesterday at 7,300 kip (US$0.912c).
After struggling last week on little to no volumes (zero trades for 3 days this month) the blue chip banking stock shook off the shackles on Monday and has since recorded very strong volumes and growth this week.
Foreigners remain the overall net buyers for the bank stock regardless of the of the parcel.
Lao shareholders will note a higher price is brewing towards a profitable holding (net equity) in the listed stocks.
Along with this week's solid trading results the technical indicators (charts) also support a market breakout to the upside.
Although BCEL filled the void, EDL-Gen also stood out with a 174pct gain US$85k to the previous days turnover (US$30k). Those waiting out the market for a better “buy in” opportunity may soon be disappointed.
Tale of the tape yesterday was only 50 EDL-Gen stocks up +50 kip greeted the first opening session.
But after the 3rd half hour closing auction session the mood confidently changed with some vigorous trades.
By 10:30am 154K matching stocks traded at the halfway mark for over US$105k.
BCEL had jumped +50 Kip in the 2nd session and by the 3rd were up 90pct in volumes for 54k stocks. EDL-Gen in that same bracket went back to the previous day's close at 4,800 kip but with extremely good trading support on 122k stocks.
Trades yesterday were flowing freely well up compared to the previous day.
By the 11am close turnover went past the 1 billion kip barrier (US$134,258) for the 3rd time this month on a resounding 196.6k of traded shares. Trading then simmered however just before the close an adventurous seller sold around 170 BCEL banking stocks for a daily gain of +150 Kip (+2pct) for 7,300 kip.
Investor strategies are always different and those shorting (early selling) EDL-Gen since acquiring their shareholders 4:1 rights issue would be in a profit taking range of 10-12pct. Whilst that is attractive the preferred investment strategy remains unchanged – go long – hold and accumulate.
Current support since July at 4700-4800 kip supports a higher EDL-Gen stock price.
It's a very good time to talk to your broker about the long term opportunities that exist right now for BCEL and EDL-Gen stocks.
Another enticement for investor's is the next dividend close off date is just over 3 months away (Mon' 31 December).
vientiane times
