The Lao Securities Exchange: Stock traders put on their smiles when the Lao market polished the long-waiting gain. BCEL stretched as far as the daily limit of 5% to the 9,450 Kip per share despite the 12% loss in trading volume. The price on EDL-Gen shares promoted to 6,650 Kip (up by 1.53%), pulling its turnover to more than 1 billion Kip, up from the yesterday’s 792 million Kip.
Rice farmers eye larger export crop: The government hopes that by 2015 farmers will grow 400,000-500,000 tons of rice a year for export, of which 50,000 tons will be top grade rice. More good quality rice is needed for export. The Ministry of Agriculture and Forestry will focus on traditional top grade rice varieties such as black rice, kaynoi, takhiet, CR 203 and thaddokkham. The ministry needs to increase rice yields in irrigated areas in both dry and wet seasons, and to encourage the allocation of more rice fields in suitable areas, especially in upland locations.
Steel producer reverses decision to raise prices: A major local steel producer, Vientiane Industry Co Ltd, has cancelled plans to increase the price of steel this week despite rising oil costs worldwide. Higher fuel costs drove a decision to hold on further import of raw materials for the time being. Currently the company is selling standard steel to dealers in Vientiane at 7.7 million kip per ton. The price has been in effect since early last year following approval by the Industry and Commerce Ministry.
The Lao stock market
Mirth was bestowed all over the Lao stock market since the turnaround of BCEL. The listed bank reached as far as the ceiling limit of 5%. EDL-Gen followed the footsteps of BCEL in the second session and almost closed at the ceiling price; however a selling frenzy was input at the very end, pushing the price of EDL-Gen down to 6,650 Kip, which was still a 1.53% gain. It almost seemed like an attempt to contain the spurring demands. BCEL will surely return better profits than EDL-Gen in a bullish run, and investors will most likely switch back to BCEL if this stock proves that it can get back to the game. Demands for EDL-Gen have eased off (down by 39%) to wait for the right signals. Total demands for BCEL surged 38% but the trading volume was 16% lower compared to yesterday, suggesting the reduced level of selling inclination on this stock, which is a good sign for a recovery. The market has not seen much hasty transaction lately because investors are taking many cautious measures against the Lao stock market.
The LSX Index 1,365.56 +28.66 [+2.14%]
The LSX benchmark gathered more momentum when both listed stocks emerged from under the water. The market reservoir was 14% higher than yesterday. Roughly 225 thousand shares were traded for approximately 1.7 billion Kip.