BCEL stock puts in gold medal performance
BCEL stock puts in gold medal performance
Pre market interest August 28 centered on EDL-Gens thin volumes and its five day locked share price, but it was BCEL that jumped out of the starting blocks and raced away with turnover breaking just past US$1 million dollars in the past 5 days. On Tuesday BCEL recorded its best volumes on the Lao stock exchange since listing in January 11 last year.
Yesterday it was an unstoppable gold medal volumes performance with turnover at a new record of 373k shares traded for the BCEL banking stock. (360k BCEL shares traded on 11-Jan – 2011).
With the banks handbrake released, volumes built in every session for a top class performance yesterday turning over a new record for the bank stock at 373K shares traded in a single day for US$ 363,184.
Yesterday finished solidly trading at 7,800 kip unchanged for a 6th straight day.
But at today's exchange rate, it didn't surpass its 10-Feb-11 closing dollar turnover record of US$521,425 on 341K stocks at 12,200 kip.
The only blemish in BCEL's trading yesterday was the banking stock fell 50 kip (0.6 percent) to 7,750 kip in sessions 2 and 3 but that was short lived as it recovered strongly in all the next three sessions to close at 7,800 KIP.
Very seldom does BCEL rule the roost but that has been the case this week with two days of incredible volumes.
EDL-Gen early lost 100 kip to 4,800. Yesterday's fall was an insignificant indicator of the already undervalued stock.
Brokers have done an incredible job rallying shareholders to sell but today could be a bit different if they realise it is the BCEL cutoff date to buy the stock as it heads into 31 August 2012 which is the record date and 30 August 2012 is the ex-dividend date.
Potentially today the bank stock could rally and easily trade above the 8000 kip mark because the stock could yield around an estimated 5 percent tax free dividend to shareholders from today.
EDL-Gens turnover of 1k stocks on Monday and today's 22k of traded shares may appear to be a bit ordinary in comparison to BCEL's current performance, but shareholders are comfortably shoring up their strategies to accumulate more stock as it comes available.
Augusts' bull market rally has been by far the best year to date trading month and still has three more trading days left.
BCEL on a roll - readies to go ex-dividend
Trading momentum continued early yesterday at the Vientiane Stock Exchange and any stocks on offer, at unchanged prices, were quickly snapped up including the very small parcel of only 45 EDL-Gen shares in the first session and only 21,800 in the second session, after that EDL-Gen remained a spectator watching BCEL's runaway performance.
A continuing run on BCEL demand is expected to continue today, Wednesday, because it is the last cut off period before the stock goes ex-dividend.
The ex-dividend date is declared by the board of directors and the board has no obligation to declare a dividend at any particular time.
The timing for the dividend normally revolves around a companies' audited accounts close off date and that can vary from weeks to months. Both Lao listed stocks have advised they will declare half yearly dividends.
EDL-Gen board of directors had already declared the electricity stock ex-dividend date as the 21st August.
BCEL this month (17th August) passed a resolution at the extraordinary BOD's meeting (BCEL) to pay dividends six monthly in lieu of annual dividends.
At that meeting the BCEL directors also set the first 2012 half year ex-dividend date as the 30th August.
BCEL shareholders who own the stock will receive a distribution of BCEL profits which will be paid out as a cash dividend to its registered shareholders.
The ex-dividend date is the day, which is usually one business day before the record date or the date when existing shareholders recorded in the register are confirmed - this is known as T-1 or one day prior to record date. Confusing as it may appear the 31 August 2012 is the record date and 30 August 2012 is ex-dividend date for the stock.
When investors buy the stock on or after its ex-dividend date, they do not have any rights to receive the declared dividend. If investors sell the stock on or after the ex-dividend date, the investor still has the right to receive the dividend. More information about EDL-Gen and BCEL dividend is contained on the LSX website along with a free copy of their English-Lao capital markets dictionary. (Ref: lsx.com.la/info/notice/viewPost.do?lang=en&postId=78).
vientiane times
