Lao Securities Exchange Calls Out Firm for Failing Discloser

0
3616
Lao Securities Exchange Calls Out Firm for Failing Discloser

The Lao Securities Exchange (LSX) has designated Phousy Construction and Development Public Company (PCD) as an “Unfaithful Disclosure” Corporation, after PDC failed to disclose its semi-annual and annual 2018 reports via LSX disclosure portal.

The “Unfaithful Disclosure” warning signal will be displayed on the symbol of PCD on the LSX trading system and website from August 27 until PCD is able to resolve the matter, the LSX announced on August 26.

The LSX’s move is seen as its latest effort to ensure that all investors are on an even playing field and have better access to the information.

The Lao Securities Exchange was established in 2010 with technical and financial support from South Korea. The Korea Exchange has a 49 percent stake in the LSX.

Thailand provided technical advice to help build the exchange, and it became operational in January 2011.

Since then, the exchange has struggled to stay profitable, although the situation appears to have gradually improved each year.

The LSX saw a net loss of USD 3.5 million in 2013, USD 2.9 million in 2014 and USD 2.5 million in 2015. The bourse was able to reduce net loss significantly in 2016 when the figure stood at USD 1.6 million.

As of end-2018, it managed to further cut losses to USD 1 million. However, its operating revenue severely dropped from USD 1.3 million in 2017 to USD 140,530 in 2018.

Speaking to the press in December last year, KRX Chairman and CEO Jung Ji-won said its investment in foreign exchanges, including the LSX, is aimed at helping various financial institutions to make a foray into different markets, with a long-term view.

At that time, Jung added that the KRX was considering improving the business situation and efficiency of these foreign exchanges it invested, without giving further details.

There are currently a total of 10 listed companies on the LSX: Banque Pour Le Commerce Exterieur Lao Public (BCEL), EDL Generation Public Company (EDL-Gen), Lao World Public Company (LWPC), Petroleum Trading Lao Public Company (PTL), Souvanny Home Center Public Company (SVN), Phousy Construction and Development Public Company (PCD), Lao Cement Public Company (LCC), Mahathuen Leasing Public Company (MHTL), Lao Agrotech Public Company (LAT) and Vientiane Center Lao Public Company (VCL).

As of August 29, the LSX Composite Index stood at 762.74 points, a 4.68 percent up from a previous day.

Apart from Lao individuals and institutional investors, foreigners are also allowed to trade stocks at the LSX once they have a domestic bank account and are registered as a “foreign investor” at the bourse. Home Trading System (HTS) is also available.