Equity plummets as investors hold on to stock
Equity plummets as investors hold on to stock
The Lao LSX stock market index rose as expected when EDL-Gen rose +50 kip to 5,800 but on very thin trades.
The cupboard was empty in the first (4) call auction closes December 13 and BCEL failed to trade all day.
4,000 shares eventually crossed in 23 trades as EDL-Gen broke the ice at the 11am close helping the index gain 8.13 points climbing 0.67pct to 1215.76 points. That's where all the action stopped until the 11:30am market close.
Today's and next week's trading is set to test investors (buyers) with shareholders (sellers) understanding the real value of holding on to stock.
EDL-Gen astute shareholders will now challenge foreign buyers as they look beyond the 5,900 kip YTD high, and BCEL shareholders will test the individual traders for the rest of 2012 looking beyond the 7,900 kip YTD high.
Thursday's and Friday's closing boards on outstanding unmatched bids will be monitored today with added interest as a leading indicator into next week's opening.
Based on this month's trend the bulls are restless and volumes are set to reappear but certainly no longer at a discounted price.
Checking the LSX website banner versus the exchange's closing table at the close it was noted that BCEL was adjusted down -50 kip on no trades per LSX rules, whilst the stock opens today @ 7,550 kip. While the price may be adjusted, we perceive both the intrinsic and market value reaching higher levels.
vientiane times
