Laos is set to open a stock market today, hoping it will attract capital to its largest enterprises and thus boost the economy of one of the world's poorest nations.

The Lao Securities Exchange, headquartered in the capital of Vientiane, will debut with shares offered by just two state-owned enterprises - Electricite du Laos Generation Company (EDL), the country's major energy enterprise, and the Banque Pour Le Commerce Exterieur Lao, official Lao media said overnight.

Foreign participation will be limited.

South Korea's Korea Exchange is investing $US9.8 million ($9.88 million), or 49 per cent of the venture, most of it for technology systems and training, according to the Seoul-based stock market operator.

The Bank of Laos, the country's central bank, is investing $US10.2 million ($10.28 million), or 51 per cent.

Neighbouring Thailand also offered assistance.

"There's a twofold reason. The exchange will allow an alternate source of capital other than banks and allow public participation in the growth of the economy," said Lorraine Tan, director of equities research at Standard & Poor's in Singapore.

"A broad capital market will certainly help economic development."

But she said that it would take some time for foreign equity to flow in. "You just can't do that by opening up a stock market," Ms Tan said.

The Vientiane Times, a state-run newspaper, quoted a securities executive as saying that foreign individuals will be able to buy a maximum of three per cent of shares issued by EDL while foreign companies and institutions will be able to purchase up to 10 per cent.
 
Hinphet Chanthalansy, deputy director of BCEL-KT Securities, said a number of foreign enterprises, especially  Thai power companies, have expressed interest in EDL.

He said shares in the company were oversubscribed by foreign investors during the recent initial public offering.

The newspaper said exchange officials say foreign ownership had to be limited to keep the inflow and outflow of foreign currency stable, one of the main drivers behind a steady and strong Lao kip.

Foreign investors trading on the Lao exchange must use Lao kip for all transactions.

The Lao Government has committed to keeping the value of the kip within a 5 per cent range this year.

The kip has increased in value against the US dollar in recent years but depreciated against the Thai baht.

The KRX said it is also working to establish the Cambodia Securities Exchange expected to open in July and helped set up the Ho Chi Minh Stock Exchange in Vietnam.

Good news and good for Laos. Can Lao oversea buy stock in Laos?

I don't see why they can't.

Admin Saovaluck wrote on 11^th Jan, 2011 at 3:44am:

I don't see why they can't.

Is there Lao stock websites or contact information for Lao expats who want to buy stock? Good first step for Laos toward Capitalist economy like China.
8-)

Admin Saovaluck wrote on 11^th Jan, 2011 at 3:44am:

I don't see why they can't.

Could point me to their website please....

Tee wrote on 11^th Jan, 2011 at 6:33am:

Admin Saovaluck wrote on 11th Jan, 2011 at 3:44am: I don't see why they can't. Could point me to their website please....

I'll try to google it and see if anything come up, but LP Admins might know more since she's living in Vientaine.

I don't know if there is a Lao stock website.

The article says that "foreign participation will be limited."

ok Admin,

This is great for Lao country. First stocks and state bonds and 401K.  May the force be with them! Hooray! Hooray! Hooray! Any information how much per share for those companies. Just wondering........

Last time I read about 4,000 Kip = $.50 per share. Also depend on what stock, and company.

Admin Saovaluck wrote on 11^th Jan, 2011 at 8:43am:

I don't know if there is a Lao stock website. The article says that "foreign participation will be limited."

Lao stock market is new. I think they'll have website and more information later.

Lao stock is up  EDL-Generation is up 4,700 Kip per share from 4,700. BCEL close at 8,000 kip. Up from 5,000 Kip. If you have 1,000 share, up 3000 Kip per share. You can make 3 million kip in one day or you can lose it all. If company go bankrupt. Lao hydropower will not go out of business anytime soon.

Is this really good news?  I mean..really?

State owned stock exchange listing only 2 companies - BOTH ARE STATE OWNED!  "State owned" = Single-party communist and socialist republic.

One of the biggest problems with the government system is open disclosure and transparency in its reporting. Due to corruption, there is a lack of accurate reporting on revenue, profits and earnings. Without clearly defined disclosures on these companies HOW CAN THE PUBLIC TRUST THE GOVERNMENT AND WANT TO INVEST THEIR MONEY?

Who would want to invest in a company when you know there is corruption, missing and unreported profits?  And since these are "State owned" companies, you know the government will not do anything about it!

"Foreign participation is limited" - WHY?  You want to open your market to investments, well there's a lot more $$$ coming from foreign investments versus domestic!!  I don't get it??

BorLeumBanGerd, I'm sure that the public will buy some shares, they don't open a stock market just for the sake of it. They've mentioned that some companies are already keen in investing their money.

They only just got started, so give them time to establish themselves. When that happens, then maybe they will allow more foreign participation in the future.

More company will be on the list later. Investors might stay alway if they lose confidence. If government don't crackdown on corruption. Improving business ranking might help. At the moment Laos rank 171 out of 187.

Two company listing is better then nothing. If Laos was democracy country I think we probably see 100 company listing in Lao stock exchange, and Laos per capita income a year is probably $4,000 a year instead of $950.
8-)

It was looking for a website I could use to track movements on the Lao Stock Exchange that led me to this Lao Pride website.  There doesn't seem to be a LSX website or any other place posting current prices.  From what I've found out, it's only possible to buy shares by visiting one of the two agencies allowed to sell shares.  One is KT-BCEL in Vientiane.  It's not possible to trade Lao shares online yet.

Are the daily share prices quoted in the Vientiane Times or the Lao language newspapers?

I try to look it up, but can't find any Lao websites stock.  Laos stock market is new and developing. They'll have it later.
8-)  


wrote on 1^st Feb, 2011 at 8:41pm:

It was looking for a website I could use to track movements on the Lao Stock Exchange that led me to this Lao Pride website.  There doesn't seem to be a LSX website or any other place posting current prices.  From what I've found out, it's only possible to buy shares by visiting one of the two agencies allowed to sell shares.  One is KT-BCEL in Vientiane.  It's not possible to trade Lao shares online yet. Are the daily share prices quoted in the Vientiane Times or the Lao language newspapers?

The Beer Lao Company will be listing on the stock market here soon when they have completed their prospectus and fulfilled the transparency, etc. requirements. So here's a question I have that applies to investing in stocks everywhere. Every time I get in conversations about the new stock market here, I hear people say, "I'm going to buy shares in the Beer Lao company! All Lao people love beer so it can't fail!"

But is this correct as far as stock price is concerned? Certainly, if the company is selling more beer, there is potential for more profit for the company and so better dividends for shareholders. But if everyone thinks it's a great stock, the massive demand for the shares will cause the share price to climb to unrealistic levels (a bubble?), and people buying shares at the inflated prices will lose out when the shares then settle down to a more realistic level. When it comes to making good stock investment decisions, it's not just about the company succeeding in the marketplace, it's more about perceptions of investors. Seems that way to me anyway.

Hi all, i'm Party, i am year 5 student at national university of Lao. i am very interested in stock market, i am trying to find how to buy a bit of share but i cant, i dont know how.

can someone help or suggest me

thanks for your kindness  ::)

Party X7 wrote on 1^st Mar, 2011 at 10:25am:

Hi all, i'm Party, i am year 5 student at national university of Lao. i am very interested in stock market, i am trying to find how to buy a bit of share but i cant, i dont know how. can someone help or suggest me thanks for your kindness  ::)

Well I don't know if they have stock brokers or not at this point and if they do have stock brokers where can you contact them.........uhhh lol
frustrating eh!  Good luck to you.

Party X7 wrote on 1^st Mar, 2011 at 10:25am:

Hi all, i'm Party, i am year 5 student at national university of Lao. i am very interested in stock market, i am trying to find how to buy a bit of share but i cant, i dont know how. can someone help or suggest me thanks for your kindness  ::)

Hi Party

Welcome to the forum!

Let me explain about the process of buying Stock.
To buy or sell stock you have to go through an agent(we call Stock broker)and you have to pay a small fee. You can also buy and sell through an Internet broker(Usually the fee is less than the normal broker)

if you want to invest, you should learn about it first.
Learn about the Rule and regulation.
learn about the company you want to buy....

You do not buy stock of the company,because of someone said is going to make your money. There are many thing you need to learn...Many things involve and beside, judging from your age,I don't think you can legally own stock yet!

Good advise. :) ;) 8-)


Tee wrote on 3^rd Mar, 2011 at 10:20am:

Party X7 wrote on 1st Mar, 2011 at 10:25am: Hi all, i'm Party, i am year 5 student at national university of Lao. i am very interested in stock market, i am trying to find how to buy a bit of share but i cant, i dont know how. can someone help or suggest me thanks for your kindness  ::) Hi Party Welcome to the forum! Let me explain about the process of buying Stock. To buy or sell stock you have to go through an agent(we call Stock broker)and you have to pay a small fee. You can also buy and sell through an Internet broker(Usually the fee is less than the normal broker) if you want to invest, you should learn about it first. Learn about the Rule and regulation. learn about the company you want to buy.... You do not buy stock of the company,because of someone said is going to make your money. There are many thing you need to learn...Many things involve and beside, judging from your age,I don't think you can legally own stock yet!

I may not be Lao, but I know an opportunity when I see one. There used to be a thing in the USA called "Penny Stock," and the average Joe could buy stock with out a broker. Those days are gone, at least here.

Please keep this thread running. If anyone hears anything new, please post it. Thanks!!!

wrote on 8^th Mar, 2011 at 8:09am:

I may not be Lao, but I know an opportunity when I see one. There used to be a thing in the USA called "Penny Stock," and the average Joe could buy stock with out a broker. Those days are gone, at least here. Please keep this thread running. If anyone hears anything new, please post it. Thanks!!!

(I may not be Lao = Meaning I hope not only Lao and Lao living abroad can invest. Sorry about any mixed meaning in that last post.)

wrote on 8^th Mar, 2011 at 8:09am:

I may not be Lao, but I know an opportunity when I see one. There used to be a thing in the USA called "Penny Stock," and the average Joe could buy stock with out a broker. Those days are gone, at least here. Please keep this thread running. If anyone hears anything new, please post it. Thanks!!!

Penny stock is the most risky stock of all. unless you can afford to lose it. It's just like put your money on the casino table.

It is risky, yes, but the investment is usually small. Akin to playing the lottery. Only a fool would buy 1000 dollars worth of lottery tickets, yet many people play 5 dollars a week. Not because they think they are going to win big, but because they can afford a small investment, and you can't win if you don't play.

If I were to go to a casino, I wouldn't walk in and bet my life's savings on 00 on the roulette wheel, yet 20 dollars on a piece of stock that looked promising would be another story indeed.

My uncle joking asked me once, "Do you want to know how to make money in the stock market?" I told him, "Yes!"
His answer, "Buy low, sell high." 55555   ;D

The first two stocks to list on the Lao Stock Market seemed to follow a predictable pattern:

1. In the first few days, the stocks rocketed with BCEL going up 200%
2. After around two weeks, some investors started to sell to take their profits.
3. Seeing this, other invested started to panic and more bailed out.
4. As of this moment, both stocks, although still higher than their opening price, have fallen back dramatically and continue to do so.

So far, the investors who bought the stocks when they were near their peaks have lost about 30% of their investment.  Those who bought at the start have made around a 100% profit.

wrote on 10^th Mar, 2011 at 7:16am:

It is risky, yes, but the investment is usually small. Akin to playing the lottery. Only a fool would buy 1000 dollars worth of lottery tickets, yet many people play 5 dollars a week. Not because they think they are going to win big, but because they can afford a small investment, and you can't win if you don't play. If I were to go to a casino, I wouldn't walk in and bet my life's savings on 00 on the roulette wheel, yet 20 dollars on a piece of stock that looked promising would be another story indeed. My uncle joking asked me once, "Do you want to know how to make money in the stock market?" I told him, "Yes!" His answer, "Buy low, sell high." 55555   ;D

if you going to buy just 20 buck of stock, The stock broker fee will eat all your profit plus your investment!

wrote on 10^th Mar, 2011 at 7:16am:

It is risky, yes, but the investment is usually small. Akin to playing the lottery. Only a fool would buy 1000 dollars worth of lottery tickets, yet many people play 5 dollars a week. Not because they think they are going to win big, but because they can afford a small investment, and you can't win if you don't play. If I were to go to a casino, I wouldn't walk in and bet my life's savings on 00 on the roulette wheel, yet 20 dollars on a piece of stock that looked promising would be another story indeed. My uncle joking asked me once, "Do you want to know how to make money in the stock market?" I told him, "Yes!" His answer, "Buy low, sell high." 55555   ;D

Laos stock double since they open. I want to buy some but can't. You have to buy them at bank in Laos, and there's no Lao stock websites yet. I like this advise "Buy low, sell high."
;D ;D

wrote on 10^th Mar, 2011 at 8:13am:

The first two stocks to list on the Lao Stock Market seemed to follow a predictable pattern: 1. In the first few days, the stocks rocketed with BCEL going up 200% 2. After around two weeks, some investors started to sell to take their profits. 3. Seeing this, other invested started to panic and more bailed out. 4. As of this moment, both stocks, although still higher than their opening price, have fallen back dramatically and continue to do so. So far, the investors who bought the stocks when they were near their peaks have lost about 30% of their investment.  Those who bought at the start have made around a 100% profit.

Wow 100% profits in couple of day nice. I would leave it for long term if I buy Lao stock.
8-)