EDL-Gen stock rallies in first day's opening trade
Locally the Lao stock market expectations were that it would experience lower volumes today, mainly because a lot of investors (local and foreign) will have taken extra holidays this week. Both stocks opened ex dividend and that could result in a lower stock price in the next 6 to 8 weeks.
Wednesday however surprised and saw a very positive opening for BCEL and a late volumes surge for a very strong close for EDL-Gen.
All the signs are there for a continuation and a possible strong finish for Thursday and Friday.
BCEL closed well up last year at 7,950 kip right on US$1-00. A trading band between 8,500 and 7,500 kip would not be beyond expectations until post Lunar New Year (the end of February). Because the stock is in the control of individuals on very low volatility and low volumes, it is more likely to trend to the upper trading band figure. Then right on cue in an above average performance at the first session's close yesterday supporting that sentiment BCEL stocks confidently emerged on 19 trades up +50 kip at 8,000 kip per share for 2,424 stocks. By the 11:30am close the banking stock fell back to 7,900 on 31 trades for 4,448 stocks.
EDL-Gen has a different set of fundamentals applied to BCEL. Being ex dividend this week will see a natural shorting of the stock (profit taking). Foreigners remain in control with 90 percent of all sales coming from individuals who can expect offers a bit lower than last year's 5,800 kip close (US$0.723c). Buyer will most likely target EDL-Gen at technical support prices which were in December around 5,750 kip and 5,600 kip in November.
The next (2) months offer some good opportunities.
• EDL-Gen traders were absent in the first session Wednesday. But by the 9:30 close the stock was up +50 kip to 5,800 kip and slowly on 41 overall trades built to 7,000 stocks by the 10:30am close. But that was only temporary as trade momentum built to 361 bullish trades for an excellent 62,312 stocks. The stock looks very comfortable at yesterday's close of 5,800 kip.
LSX Index: The trading was very positive and was much better than anticipated as the index put on +0.67pct or +8.13 points to 1222.90.
• The Index climbed 10.17 to 1224.94 points for a sub total of 6,244 shares, but then interest waned away to just 22 shares in the next session before recovering to near 9,500 shares by the 10:30 close.