Category Archives: Stocks

Lao Government Warns Public About Dangers of Financial.org

financial.org ponzi scheme laos scam

The Lao government has issued a notice warning members of the public against investing in bogus investment broker, financial.org, and calling on those who have invested to declare their losses.

The company, already on several international watch-lists, is the latest in a number of Ponzi scheme style businesses to set up shop in Laos, aimed at duping members of the public into making investments for supposedly quick and profitable returns.

A British news report by Reuters drew the attention of the Lao government, in which it came to light that the company, describing itself as an education company, would be struck from the UK registrar of companies for failing to file accounts.

Financial.org operates in several Asian countries, including China, Indonesia, Malaysia, Singapore, Thailand, Vietnam, and Laos. According to the Reuters report, individuals were handing over anything from US$ 3,000 to US$ 400,000 to the bogus company for investments.

The company is already on an investor alert list created by the Monetary Authority of Singapore, and similarly Malyasia’s Securities Commission placed Financial.org on a list of unauthorized companies and websites last year.

gala dinner in Vientiane hosted by Financial.org

A Gala dinner in Vientiane hosted by Financial.org

Under a Ponzi scheme, those who invest first are provided returns stemming from funds invested by newer members, rather than through actual stock market investments as promised. Earlier members are encouraged to bring new members into the scheme to provide a continual source of income for the scheme. While the earliest members can make money quickly, newer members face huge losses, and eventually the scheme falls apart.

To make itself more believable, Financial.org has attempted to register in the UK, and has even sponsored a Formula One team.

The Lao government is now calling on the public to declare their losses with the hope of exposing the scheme and halting further investment.

According to a Vientiane Times report, the central bank told the National Assembly in 2016 that there were 24 entities illegally soliciting deposits from the general public.

The central bank has warned that tough measures will be taken against companies offering such services.

Executives of some companies in question have already been prosecuted, including those at PS Lao Enterprise and Asianface Company. The case against Laokham is ongoing, and the government is now investigating Financial.org.

Lao Cement Becomes 7th Company to be Listed on Lao Stock Market

Lao Cement Public Company became the seventh company to be listed on the Lao Securities Exchange, under the financial advisement of Lao-China Securities Company, and with the former’s shares being traded at 2,500 kip per share.

On the 2nd of March, the newly listed cement company held a ceremony officially inaugurating the trading of its shares at the Lao Securities Exchange building in the presences of Saysamone Chanthachack, Director General of the Lao Securities Commission Office, Vankham Voravong, Director of the Lao Securities Exchange, Liu Wei, Chairman of Lao Cement Public Company, and Khamkeo Visisombat, Chairman of Lao Cement Public Company and other company officials.

“Under the guidance of the Lao Securities Commission Office and the Lao Securities Exchange, we are glad to have fulfilled all of the conditions and requirements to be listed on the stock market. Our stocks began to be publically traded on the 9th of February. The IPO was able to help raise USD $3.47 million which we will invest in production upgrades,” says Liu.

Lao Cement’s IPO was Lao-China Securities first financial advisement project of the kind and also the first time it has underwritten shares. It remains confident that the capital raised to be used for production capacity improvements will bear fruit and increase the bottom line for the company in turn, its investors, both institutional and public.

Lao Cement Public Company (LCC) is a preferred technological and economic cooperation project between Lao and Chinese Governments using confessional loans from China to Laos. The company is jointly invested by China Yunnan Corporation for International Techno-Economic Cooperation (CYC) and Lao State Agriculture Industry Development Enterprise Import-Export & General Services, and produces sells cement products in the domestic and overseas markets.

There are currently 7 listed companies on the Lao stock market: Banque Pour Le Commerce Exterieur Lao (BCEL), EDL Generation (EDL-Gen), Lao World (LWPC), Petroleum Trading Lao (PTL), Souvanny Home Center (SVN), Phousi Construction and Development (PCD), and Lao Cement (LCC).

Sources: Lao Economic Daily & Xinhua

Lao Stock Report: Jan 23

Weekly Stock Report (Jan 23rd): Lao Securities Exchange Index was stable points for the first two days, and then continued dropping respectively in the last three days of the week. However, there was a very surprise trading on Friday. Overall the week, total trading volume was 2,789,400 shares and total trading value was over 13.867 million kip. Comparing since January 2016. High: 1,232.09. Low: 963.74 point.

BCEL price unchanged 6,000 kip/share and lacked of matching for four days unexpectedly for this week. Overall the week, the total trading volume was 1,100 shares and total trading value was 6,620,000 kip. Comparing since January 2016. High: 6,600 kip/share. Low: 4,200 kip/share.

EDL-Gen price ended down to 5,050 kip/share with a lot of trading on Friday. Even was not trading for two days in the price of 5,500 kip/share. Overall the week, The total trading volume was 2,735,700 shares and total trading value was over 13.687 million kip. Comparing since January 2016. High: 6,200 kip/share. Low: 4,700 kip/share.

LWPC price closed 5,800 kip/share after touched down to 5,750 kip/share without matching. However, this week was an interesting trading if compared to many months ago. Overall the week, The total trading volume was 12,800 shares and total trading value was 73,945,000 kip. Comparing since January 2016. High: 7,300 kip/share. Low: 5,400 kip/share.

PTL price unchanged 2,500 kip/share and there was not any share executed for three days for this week. Overall the week, the total trading volume was 39,800 shares and total trading value was 99,500,000 kip. Comparing since January 2016. High: 3,000 kip/share. Low: 2,300 kip/share.

SVN price unchanged 2,800 kip/share and there was not any shares matching all for this week. Comparing since January 2016. High: 3,400 kip/share. Low: 2,700 kip/share.

Source: Lanexang Securities Public Company

BCEL-KT: Trade Summary (Jan 4, 2017)

Trade Summary

LSX was up 54.58 points or 5.21 percent on the second trading day of 2017 as EDL-Gen rose by 300 kip to 5,500 kip and BCEL has hit 6,000 kip threshold for the first time since August 2015. Today, BCEL closed up by 500 kip at 6,000 kip, with the total trading volume of 21,000 shares. BCEL enjoyed improved financial report for the nine months of 2016 which showed its EPS of 708 kip, compared with just 233 kip for the same period in 2015. In the meantime, EDL-Gen also rose strongly by 300 kip at 5,500 kip with far less sellers on Wednesday, while PTL lost 50 kip to finish at 2,450 kip with 23,400 shares, worth about 57 million kip. On the other hand, SVN stayed unchanged at 2,700 kip with 4,300 shares but LWPC saw no trading at the unchanged price of 5,900.

BCEL-KT: Trade Summary (Jan 5, 2017)

Trade Summary

LSX kept its upward movement, adding 40.71 points to the market index to finish at 1,142.56 points, while BCEL touched the ceiling price again on Thursday, closing at 6,600 kip. The banking stock saw 32,800 shares of trading volume, translating to about 202 million kip. On the other hand, EDL-Gen also picked up 200 kip to close at 5,700 kip, with 25,600 shares traded. As to LWPC, PTL and SVN, they all stayed unchanged at 5,900 kip, 2,450 kip and 2,700 kip respectively with no trading.

BCEL-KT: Trade Summary (Dec 26, 2016)

Trade summary

Lao stock market edged higher on Monday, as BCEL got good start before preparing for long holiday to increase by 450 kip finished at 5,500 kip, amid lake of offering order. EDL-Gen closed unchanged at 5,000 kip, with 33,400 shares traded, generating just 167 million kip of turnover. While others were steady because lake of market liquidity. Total market trading volume today was 52,300 shares worth around 270 million kip. Index rose by 0.59% or 5.99 points to stay at 1,014.55 points.

BCEL-KT: Trade Summary (Dec 23, 2016)

Trade summary

Lao stock market sew lower on the final trading day of the week, after banking stock hitting 5,500 kip on mid morning, then turn down to close at 5,050 on the final trading session, but also higher by 50 kip compare from previous day. The trading volume was mostly contributed by BCEL, which saw 47,700 shares traded for 255.5 million kip. The volume of the Energy stock however, was not impressive, with just 1,000 shares matched. SVN made a now points lower by 300 kip to 2,700 kip, with small volume of 300 shares traded, while the other stocks had no trading.

The market index slightly lower by 0.41% or 4.16 points to 1,008.56 points. Total market turnover worth around 261 million kip.

 

 

BCEL-KT: Trade Summary (Dec 22, 2016)

Trade summary

Lao stock market mixed on Thursday, as energy stock jumped by 50 kip to close at 5,000 kip, posting trading volume of 19,000 shares. Unfortunately banking stock opened slightly lower by 50 kip to close at 5,000 kip posted of 2,200 shares matched.

Today, the index slightly higher by 0.75% or 7.52 points to 1,012.72 points, with trading volume of 21,500 shares higher compare to previous day, worth around 106 million kip.

 

Market closing day

We would like to notify its market closing days on the occasion of ending the year 2016 and the beginning of the year 2017 as follow:

28 – 30 December 2016: Last 3 Business Days
02 January 2017: Compensate for New Year’s Day

LSX will resume to normal operation on 03-Jan-2017