LSX FORWARD
Amidst the atmosphere of the Party and Government of the Lao People’s Democratic Republic (Lao PDR.) focus in campaign and leading the whole Lao nation putting all tireless efforts and intelligence in realizing performances to celebrate the two historical days of Lao PDR – the 40th Anniversary of Lao National Day and the 65th Anniversary of the Foundation of the Lao People’s Revolutionary Party as well as to comprehensively prepare for the regional economic integration, in particular being a member of the ASEAN Economic Community (AEC) in the end of 2015; Lao Securities Exchange (LSX), the first exchange of Lao PDR established on October 10, 2010, has been essentially contributing to support and strengthen the financial market of Lao PDR by creating new alternatives for business entities on efficient long-term fund mobilization for business expansion and new choice for investment.
Over the last five years, LSX has been operating based on its role for economic development as a central platform facilitating public and private corporations interested in capital mobilization for business expansion and to list on LSX as well as servicing securities trading, settlement-clearing and depository. Moreover, LSX has accomplished numerous outstanding achievements, especially an increase of listed companies number from 2 companies in year 2011 to 4 companies at present, namely Electricite Du Laos-Generation Public Company (EDL-Gen), Banque Pour Le Commerce Exterieur Lao Public (BCEL), Lao World Public Company (LWPC) and Petroleum Trading Lao Public Company (PTL), with total fund mobilization in value of LAK 5,883 billion, resulting a rise of LSX market capitalization from LAK 5,175 billion (on the first trading day 11/01/2011) to LAK 12,294 billion (Updated as of 02/10/2015) increased LAK 7,119 billion or 137.6% this year. This increasing number will be expected to simultaneously go up after Souvanny Home Center Public Company completes IPO and lists on LSX. For the securities accounts, the number also enlarges from 4,117 accounts to 11,756 accounts with 7,639 accounts increased as equivalent to 185.5% where the total trading volume is LAK 143 million shares in value of LAK 947 billion. The composite index of LSX closed at 1,253.12 which slightly went up 253.12 or +25.3% from 1,000.00 (Base Value).
Together, LSX trading system has also been continuously improved and developed such as the introduction of Home Trading System (HTS) at the end of 2013, trading method upgrade from Call Auction to Continuous Auction in line with the extended daily price limit change from ±5% to ±10% in 2014. In addition, LSX has developed Custodian Business Management System in supporting and facilitating foreign investors. Furthermore, LSX has planned to adjust the minimum trading unit from 1 to 100 shares which will be effective on 11/01/2016, and also developed Block Trading System to be officially launched within 2nd quarter, 2016.
Similarly to the international affairs, LSX has bonded a relationship with Korea Exchange (KRX) as a strategic partner as well as with HoChiMinh Stock Exchange (HOSE) and Hanoi Stock Exchange (HNX) of Vietnam and Stock Exchange of Thailand (SET). In the meantime, LSX is being arranged to sign a memorandum of understanding with ShenZhen Stock Exchange (SZSE), The People’s Republic of China, initiates a tie-up with Cambodia Securities Exchange (CSX) and processes to be a member of The Association of National Numbering Agencies (ANNA).
At the same time, in cooperation with securities companies and listed companies, LSX has organized Capital Market Education Promotion (CMEP) in order to provide fundamental knowledge on capital market to the public through seminars, road-show, book publishing, articles and multimedia for raising public awareness of Lao capital market. Furthermore, in order to promote securities investment in Lao PDR, LSX and the related parties reduced the trading fee 0.2% where buying is 0.7% and selling is 1.0%.
In accordance with 2016 – 2020 Strategic Plan of Lao Capital Market Development, LSX has set its five-year business plan targeting for at least 25 listed companies within 2020. Besides, LSX is to conduct a feasibility study of the mutual fund to be able listing on LSX as an alternative investment for retail investors, newly introduce derivatives such as Future or Option to attract more investment. Additionally, LSX would enhance its trading system to liquidize and meet investor demand and international standard such as increasing order types, opening of afternoon trading session, carrying out research on an establishment of SME Board, linking correspondent banks, etc. Finally, in order to promote Lao Capital Market in the regional and international arena, LSX plans to be a member of World Exchange Federation and ASEAN Exchange Linkage in the near future.