Time flies as Lao Securities Exchange turns 10 Years anniversary
The Lao Securities Exchange (LSX) was established from the date on 10 – 10 – 2010 till present is accumulated as 10 years anniversary. LSX is recognized as one of the alternative investments among the enterprises that aim to have a fund raising in the capital market. This is because LSX is considered long-term financing for fundraising when compared to commercial banks and financial institutions.
Initially, there were only 2 listed companies on the LSX which were named BCEL and EDL-GEN. Moreover, there were 1 or 2 enterprises that qualified to list on the exchange in each year, until present there are already 11 listed companies on the LSX. In the late 2020, LSX expected to have a company to list on the exchange, which is Eneco Dynamic Public Company (EDP), a company operates the fuel importing and wholesales as Diesel and Benzene Regular, EDP is 100% Lao public company.
Importantly, in the period just 10 years LSX has a pivotal role on driving Lao economic step-by-step with the total market value more than 7.8 billion kip or accounted for almost 5% of Lao PDR GDP in 2019), with the total investor accounts around 15,000 accounts and foreign investors are covered more than 20% (Data: Q2, 2020). Likewise, LSX also plays a significant role on economic system as follow:

1). To encourage and input a new way of saving: There is not only one option for The habit of ordinary persons for saving by bank deposit, but buying a stock is also recognized as another saving money for the opportunities for the different returns.
2). To encourage the investment: Capital market is a crucial element of the economic system as the business units may require a large financial fund for their business expansion, solely borrowing from the bank may not meet their requirements. Meanwhile, the firm will encounter the difficulty of paying back the interest rate that may increase. Therefore, the capital market is an optional choice for helping firms to manage and adjust the structure more efficiently.
3). To create and maintain constancy: There are several types of investment in the capital market, it helps to maintain and enhance the wealthy. This is due to the level of returns and risk differentiation, which the investor can obtain. If the market has potential growth and stability, it would provide magnificent returns to the shareholders.
4. To create a hub of jobs for the nation: The capital market is the center for gathering all listed companies that raised funds through the exchange for their business purpose including commercial and services, including the relevant companies in the capital market such as Securities Companies, Securities Market and Securities Commission Office.
5. To promote the policies of the government: The capital market is a center of fundraising, choice of saving, employments that created a prime importance role of capital in driving local economic including both microeconomic and macroeconomic. As a result,the government could imply the economic policies through the capital market so as to widely spread those policies into other sectors and help the economic system change into the proper directions.

Thus, on this coming 10 October 2020 LSX will officially celebrate its 10 years anniversary. Thus, we would like to invite everyone to join the designated event later. This event shall have the financial products exhibitions, the seminars on the various topic related the market capital, the guidance of stock investments and others activities or you may follow LSX’s page and website at : Facebook page: www.facebook/LSXinvestmentGateway and website: www.lsx.com.la

“The column for 10th year anniversary celebration”
(By: Lao Securities Exchange)