Lao stock market marks second anniversary
Lao stock market marks second anniversary
The Lao Securities Exchange (LSX) has set up an online stock trading system and plans to launch the service in the near future, according to a stock market report.
The report was released to media this week as part of activities to mark the second anniversary of the Lao Securities Exchange. It says the stock market is seeking permission from the Lao Securities Exchange Commission to introduce the Home Trading System, hoping to get the green light to launch the service in the near fut ure.
Using an internet connection, the online trading system will enable investors to trade stocks on the exchange from anywhere in the world. The new system will not only make it easier for local and foreign investors to trade on the Lao stock market but will also help to boost market liquidity.
At present, the Lao Securities Exchange offers call auctions six times a day, to give investors full trading opportunities. Last year, stock auctions took place only twice a day.
The Lao stock market is also developing block trading and a custodian business, which it also hopes to launch soon.
One of the major achievements of the Exchange over the past two years has been the creation of the Lao Capital Market Dictionary to inform investors and the Lao public about the workings of the stock market.
The Exchange plans to list two more companies in the near future to create more products on the market, which would make the exchange more attractive to investors.
At present, only two companies are listed - BCEL Bank and EDL-Gen. This is the root cause of low liquidity in the market, which is below expectations.
The Lao stock market has attracted the attention of domestic and foreign investors as they await the listing of more companies. This is a major challenge for the market in boosting liquidity and persuading more companies to list, the report notes.
The Lao Securities Exchange plays an important role in the Lao capital market. It was established on October 10, 2010, through a joint venture between the Bank of the Lao PDR and the Korean Exchange.
The Exchange is a secondary market that acts as the central point for securities exchange transactions between investors, supporting the liquidity of marketability for shareholders in the primary market or, in other words, creating and sustaining reliance for the primary market.
vientiane times
