Index soars but EDL-Gen rates as one of 5 best stocks to own in Asia
At the Lao stock exchange is where today's focus is at and the story doesn't get much better than the Lao index's +31.43 percent year to date gain.
For 2012 that is an 18 month high last seen on May 18, 2011.
That remarkable figure propels Laos as one of Asia's best performing and leading YTD indexes.
November 13 the index fought off the massive drop 1,800 volumes from the previous day with a 79K stock market rally which just gets better by the day.
Apart from our upbeat market reports this quarter, the Lao stock market is also internationally starting to turn heads with its outstanding 2012 YTD results.
Glum dour market performance is unheard of at the LSX in 2012 and the local exchange is continually gaining more attention from foreign investors.
EDL-Gen for example was rated by cnn money website (23-Oct) as “one of the 5 best stocks to own in Asia”. CNN Money reported “For a pure frontier market play……..EDL-Gen is a good bet”.
An addendum to that report (referring to EDL-Gen) added the electricity business in Laos is set to compound with a 19pct growth rate until 2020. In 2011 EDL-Gen paid a dividend yield of +10.3 pct or 7 times earnings estimates – even though profits are expected to grow 30pct this year.
The Lao LSX index closed at 1150.67 points on Monday making the year to date (YTD) gains nothing short of outstanding. The rally which began in August with a small breakout, noted that November improved another +6.90 MTD or a half yearly gain during Q3-4 of +16.25 percent. All the impressive numbers and fundamentals now put investors well and truly in their comfort zone and back up and support a continuation of the current rally until year's end.
There is also no reason that EDL-Gen could not comfortably trade near or above US$1-00.
Reference points for further supporting investor research websites include Lanexang Securities, Bloomberg Markets and BCEL-KT Securities, http://data.vietstock.vn and http://Money.cnn.com
The local stock exchange (Est' Jan-2011) outlook for the rest of the year justifiably remains soundly “bullish”.
The local market in its third consecutive month of bullish gains is moving continually higher to new year to date highs, albeit in systematically 1 to 2 percent increments.
With all the topsy turvy events and all the kicking the can down the road in the global market arena, the local Vientiane stock exchange is a very attractive option.
The Lao exchange represents strong moderate long term gains and YTD extremely low volatility. In equities it is very hard to find another market with an outlook as a safe haven such as is the case with the Lao market.
With all investments there are always “hidden” risks.
But the Vientiane Exchange in 2012 is one of ASEAN's best performing indexes and finds that its listed stocks are well priced, with both possessing exceptional longer term potential.
Applied fundamentals all support the brokers' analysis forecasts that is one with long term value for both listed stocks.
- VIENTIANE: LAO LSX INDEX: In a show of strength the equity fell right away on Monday to a fraction over 1800 stocks, a great supporting sign reading for another “bullish” charge up the ladder. Tuesdays opening session was positive on 1,069 stocks and a signal the volumes maybe just around the corner. However a fall in BCEL's price saw the index drop (but a short lived fall) -1 point to 1049.65 points. The second session was a small surge also positive with 85 trades for EDL-Gen yielding an extra 16K stock. Momentum built as the bulls rampaged trading to 60,382 stocks by the 10am half way mark, which also set another new record YTD high of 1158 points or plus +30.19pct YTD. By 11am it was unbelievably higher again to 1167.96 or +31.31pct YTD high. The last close saw an 18.31 points gain for the day to 1168.98 points for a +1.59pct daily gain. The mood was all positive.
- BCEL Banking Stock: Lack of availability of large parcels appears to be holding back this stock's price. When the volumes are offered there is some sparring but eventually all are quickly snapped up by foreigners, who understand the cheap valuation of the stock on offer. BCEL yesterday opened the first session down -50 kip ( 7,450 kip/share ) on 3 small trades totaling 404 stocks, no trades in the second and a total of 8 trades for 1010 stocks by the half way mark. The next hour saw that build to 18 trades for 2,400 stocks but closing squared up the stock price on 3,900 stocks for 29 mil / kip.
- EDL-Gen Hydroelectricity Stock: This stock is in great demand and shareholders of the stock would do well to accumulate more of the stock over time. EDL-Gen opened yesterday's first session with a modest 4 trades involving 665 stocks at an unchanged 5,450 kip/share. The 9:30am close extended trades to 92 transactions totaling 16,900 stocks. Things then turned as the stock added +50 kip (to 5,500 kip/share) on a total of 326 trades for 59,372 stocks and by 11am that improved to a daily gain of +100 kip ( 5,500 kip/share ) with 75½ K stocks crossing and still one session to go. By the close at 5,550kip EDL-Gen had a great total of 75,584 stocks for 415 mil/kip.
VTtimes Mekong Indexes Thailand SETI 1,286.59 -0.61pct; Hanoi HNXi 52.29 -0.44pct; HCM CITY VNI 387.48 -0.29pct; Laos LSX 1168.98 points for a +1.59pct daily gain; Cambodia locked all week at 666.67 (0.00).
East ASEAN Indexes: Malaysia FBM KLCI 1,637.59 -0.21pct; Singapore STI 3,007.57 -0.07pct; Indonesia JSX Composite 4,337.43 0.44pct; Philippines PSEi 5,458.99 -0.21pct; FTSE/ASEAN40 10,788.54 -0.07pct