Index supported by gains for 3rd day
Index supported by gains for 3rd day
The local bourse (stock market) trades continued August's improvement, as the index ground out more small gains on a much lower turnover for a third day.
Investors took somewhat of a breather yesterday as the turnover dropped -85pct to the previous day. The turnover may have fallen away yesterday compared to earlier in the week but that is to be expected, as the index and stock prices improve. Investors in such situations reappraise holdings and purchasing strategies as conditions start to improve (resistance) on a rising market, as is the current scenario at the LSX. Both stocks are retaining and holding onto hard fought price gains.
• BCEL held onto Wednesday's 2pct gain and EDL-Gen followed suit yesterday with a 1pct or +50 kip gain. Both stocks have risen +50 kip during the past two days. First it was BCEL that pushed the index up 3 points on Wednesday, yesterday it was EDL-Gen's turn when it added another 9 points to the Lao index, which continues to improve this month by ascending up +3.70pct over the past 30 days.
• All are reconfirmation indicators of positive confident signs for investors that they have vested interests in the local blue chip EDL-Gen and BCEL stocks and that supports more upside growth with 3 consecutive days of gains totalling 20 points.
• The LSX Index on the 17th July closed at 998.87 points just below its 1,000 point market opening benchmark set on 11.1. 2011. Yesterday the indexes stronger performance was illustrated with a net 30 day closing gain of 37.88 points higher, at a healthy 1036.75 points.
• In the absence of a lower price yesterday only 5,146 BCEL shares (US$4.7k) carried over for 7,300 kip each in the first 9am closing session. Sellers held out trades over the next two closings before any more shares emerged at the 11AM close.
• Thin volumes then followed in the last close with 935 BCEL stocks crossing unchanged but EDL-Gen true to form gained 50 kip to 4,850 kip turning over near 20k shares in that session for US$12,000. That put the cat amongst the pigeons for investors to bid before the close of the last session, which only recorded US$1,430 of EDL-Gen trades at the new encouraging daily high 4,850 kip.
vientiane times
