What’s on the plate for Laos’ bourse?

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Lao_Telecom © Arno Maiebrugger
Lao Telecom headquarters in Vientiane (Photo © Arno Maierbrugger)

A booming economy with a GDP growth rate of 8 per cent in 2012 and heavy investment activity are seen as main drivers for the Laos stock market in the future.

The capital market in Laos is – apart from Myanmar’s – the most underdeveloped in ASEAN. The Laos Stock Exchange (LSX) only opened in 2011 with support from the Korea Exchange, which also holds a 49 per cent stake, and advice from Thailand. Currently, there are just two companies listed at the LSX, which are the Banque Pour Le Commerce Exterieur Lao (BCEL) and EDL-Generation (EDL-Gen), a subsidiary of state-owned power company Electricité du Laos.

These two companies currently make up the LSX Composite Index. Market capitalisation as per the end of 2012 stood at 8.136 billion kip ($1.06 billion). Around 58 per cent of stock investors came from abroad, mostly from China and Thailand. Detailed statistics for 2012 can be downloaded here.

With the inception of the LSX, two securities companies have been launched, one as a subsidiary of BCEL, BCEL-KT Securities, and Lanexang Securities Public Company, a joint venture between Sacombank Securities  and the Lao Development Bank. These two companies are the only ones licensed to sell LSX stocks.

Some initial public offerings are expected in the near future.

The Lao-Indochina Group Public Company, an agricultural firm engaged in growing cassava and tapioca, is planning to be listed on the LSX as the first private company. State-owned Enterprise of Telecommunications Lao (ETL) is expected to list 30 per cent of its shares. Five per cent are planned to be will be offered to ETL staff, 15 per cent to Lao nationals and 10 per cent to foreign investors. ETL currently has about 960,000 mobile phone subscribers.

Privately owned Lao World Group, a diversified group that invests in agriculture, engineering, construction, hotel and tourism sectors, also aims at a listing

Another two candidates are Lao Airlines,wholly owned by the Lao government, and Lao Brewery Company, a 50-50 joint-venture between a state firm and Danish brewer Carlsberg.

 

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Reading Time: 2 minutes

Lao Telecom headquarters in Vientiane (Photo © Arno Maierbrugger)

A booming economy with a GDP growth rate of 8 per cent in 2012 and heavy investment activity are seen as main drivers for the Laos stock market in the future.

Reading Time: 2 minutes

Lao_Telecom © Arno Maiebrugger
Lao Telecom headquarters in Vientiane (Photo © Arno Maierbrugger)

A booming economy with a GDP growth rate of 8 per cent in 2012 and heavy investment activity are seen as main drivers for the Laos stock market in the future.

The capital market in Laos is – apart from Myanmar’s – the most underdeveloped in ASEAN. The Laos Stock Exchange (LSX) only opened in 2011 with support from the Korea Exchange, which also holds a 49 per cent stake, and advice from Thailand. Currently, there are just two companies listed at the LSX, which are the Banque Pour Le Commerce Exterieur Lao (BCEL) and EDL-Generation (EDL-Gen), a subsidiary of state-owned power company Electricité du Laos.

These two companies currently make up the LSX Composite Index. Market capitalisation as per the end of 2012 stood at 8.136 billion kip ($1.06 billion). Around 58 per cent of stock investors came from abroad, mostly from China and Thailand. Detailed statistics for 2012 can be downloaded here.

With the inception of the LSX, two securities companies have been launched, one as a subsidiary of BCEL, BCEL-KT Securities, and Lanexang Securities Public Company, a joint venture between Sacombank Securities  and the Lao Development Bank. These two companies are the only ones licensed to sell LSX stocks.

Some initial public offerings are expected in the near future.

The Lao-Indochina Group Public Company, an agricultural firm engaged in growing cassava and tapioca, is planning to be listed on the LSX as the first private company. State-owned Enterprise of Telecommunications Lao (ETL) is expected to list 30 per cent of its shares. Five per cent are planned to be will be offered to ETL staff, 15 per cent to Lao nationals and 10 per cent to foreign investors. ETL currently has about 960,000 mobile phone subscribers.

Privately owned Lao World Group, a diversified group that invests in agriculture, engineering, construction, hotel and tourism sectors, also aims at a listing

Another two candidates are Lao Airlines,wholly owned by the Lao government, and Lao Brewery Company, a 50-50 joint-venture between a state firm and Danish brewer Carlsberg.

 

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