Lao Securities Exchange aiming for big boost in trade with more listings

Park Hojeong, vice chairman and chief operating officer of the LSX, said recently that by 2016, listed companies should multiply to 10 from the present two.
The LSX works closely with other parties to educate the public on the capital market through many activities, including seminars, even in the countryside. It views 50 companies and state-owned enterprises as showing listing potential.
One of the obstacles to capital market development is the lack of understanding among domestic investors and people. It is also difficult to encourage many companies and state-owned enterprises to list.
The LSX has encouraged companies and state enterprises to adopt the International Financial Reporting Standards for accounting.
The two listed local firms are Banque Pour Le Commerce Exterieur Lao (BCEL), one of the largest commercial banks, and EDL Generation, one of the major electricity generators. EDL-Gen and BCEL trade 25 per cent and 20 per cent of their share capital, respectively in the stock market.
The LSX, a joint venture of the Lao government and the Korea Exchange, opened on October 10, 2010 and started trading in January 2011 as part of the government’s sixth social-economic plan (2006-10).
The Vientiane Times reported last week that according to the National Economic Research Institute of Laos’ initial estimate, economic growth would reach 8.1 per cent this year. However, if government and foreign investment projects are successfully implemented, growth would reach 8.3 per cent and continue at 8.2 per cent in the next two years.
The LSX has already developed the Home Trading System for online trading and is waiting for Securities and Exchange Commission approval to implement it.
“We expect the service for investors, including foreigners, will be inaugurated this August,” he added.