Tuesday trades a slender improvement
Tuesday trades a slender improvement
LSX closing bell:
• BCEL banking stock Monday was down -50 kip at 7,500 kip however yesterday volumes increased from just 6 trades Monday to 72 trades for 9,572 stocks Tuesday and rising +50 kip to 7,750 per share late in the day.
• EDL-Gen Monday was down -50 kip to 5,750 kip. But yesterday with one session to go it rose to 5,800 kip but slid back to the previous day's close. EDL-Gen turned over 91 trades well up on the previous day's 18 trades, reaching 15,858 shares for 91 mil / kip.
• Index Monday fell -10 points to1205.59 points but was pushed up to 1214 as EDL-Gen gained but then retreated and closed unchanged. The exchange's volumes of 25.43 K shares were much better than the previous 3 days which only averaged near 4,000 shares.
Mekong Indexes except for Vietnam have enjoyed an exceptional year in year to date gains, and Laos and Thailand as emerging markets are definitely turning heads as the place to invest.
Vietnam has the potential to make amends in 2013 if they can resolve internal banking administration trading issues, plus the impact from depreciation of the Dong currency and inflation.
Disappointingly the one or two proposed Lao listings for 2012 didn't materialise but that was expectable given global financial difficulties; that could change if there is an early improvement in global/Asia investment conditions in 2013.
Local investors are querying the current state of the market, which is holding onto stock, resulting in lower turnover with prices very much unaltered as trading falls right away.
That low volatility translates into a positive sentiment. If last year is any indicator, it is likely to extend right through until the end of the New Year festive and the February lunar holiday season.
As a result the local exchange has this month recorded lower than normal equity (turnover) and less matching bids for stock; it has soundly maintained YTD value highs.
Foxing investors are willing to pick up stock in small parcels, which doesn't seem to bother them even though it can be very time consuming.
Both stocks are near resistance (BCEL 7,600 and EDL-Gen 5,800) but also better still both are resting at support (BCEL 7,500 and EDL-Gen 5,750), a good indicator both can expect a price rise before the 26-Dec year's close.
vientiane times
