5 day bull rally, stock market at 18 month high
5 day bull rally, stock market at 18 month high
The unstoppable local and insular stock market early November 8 noted the LSX Index put on another 4th day gain of 19 points.
Yesterday was all upbeat as the November volumes flowed and equity built in early trading sessions. Locally foreign investors are taking little or no notice of market headlines about Wednesday's concerns that the US readies to abseil the high risk “fiscal cliff”. The bullish Lao stock market in a breakout is consolidating as demand increases ahead of next month's dividend close off date. Sellers for the past (2) weeks have remained in “the box seat” as price gains continue to rally in 2012. The strong bull rally has now continued for a 4th straight day with yesterday's turnover the best volumes for (2) weeks. The Lao index which languished at an all time low at 877.44 points on 5th January hasn't looked back for the rest of 2012.
Opening Bell: Yesterday the index hit a new (18) month high. The best point since May last year and also a new 2012 year to date high of 1141.52 points. That 264 point or +30.10pct turnaround makes the Lao stock exchange one of the best stock market regional performers in 2012 in Asia. The previous day's 191 trades for 33K stocks was easily surpassed in Thursday's trading. With 4 of the 6 (half hour closing) sessions expired, as at 10:30am yesterday, trading noticeably picked up following Wednesday's lead. BCEL had 37 minor trades for 4,974 scarce stocks up +50 kip. But EDL-Gen again stole the limelight in those sessions again up +100kip to a new high of 5,400 kip - the best price for the hydro-electricity stock since June 2011 on a very strong and robust 74,989 stocks.
Closing Bell: The current performance has definitely put a smile on the faces of investors with renewed confidence about their portfolio holdings which have risen quite noticeably since August this year. Yesterday with a 1.72pct gain the index closed at a new YTD outstanding high of 1141.52 points on a total of 83717 for 461 mil / kip. As anticipated, EDL-Gen after breaching the 4,900 resistance barrier has now had an extended 8 day rally peaking at 5,400 with volumes in every session yesterday well up at 77,496 stocks for 415 mil/kip. BCEL is finding resistance at yesterday's closing price 7,450 but fundamentals all say it has more gains in store. BCEL squeezed out just 6,221 stocks for 47 mil /kip - a strong sign a bigger rally could be on the cards. As for today, the bullish sentiment of increasing turnover should see the bourse at its strongest close for the week.
vientiane times
