Laos Stock Market

Post by **rufus** » January 2, 2011, 11:07 am

The Lao stock market has opened and is accepting requests for shares. So far only two companies have listed, BCEL Bank and EDL, the Lao Electricity Company, and offers for both of these have closed - they sold out amazingly quickly. Trading offically begins on 11 Jan.
Foreigners can buy shares, and I have done so. The BIG one that all are waiting for is the listing of Beer Lao. I have been told this will be about March/April.
Why am I posting this? Frankly, I think there is good money to be made by investing in certain stocks EDL sells hydro power to Thailand and China and is in the process of expanding. Beer Lao is a high quality product.

Post by **siddiq** » January 4, 2011, 7:21 pm

Do you have a link or somewhere to get further information so I can do some background work?

What is the level of corruption compared to Thailand?

Post by **rufus** » January 5, 2011, 10:23 am

Level of corruption is equivalent to Thailand. I will post a link tonight.

Post by **wazza** » January 6, 2011, 8:29 pm

" Corruption is perceived as rampant. Laos ranks 151st out of 179 countries in Transparency International’s Corruption Perceptions Index for 2008, a slight improvement over 2007. Bribery of low-level officials to expedite business licenses and import permits is common, and there is growing anecdotal evidence of more pervasive corruption among higher-level officials within the executive and judicial branches "

taken from this source - http://www.heritage.org/index/country/Laos

I would shudder at the term " insider trading "

Post by **bumper** » January 7, 2011, 4:14 pm

rufus wrote:The Lao stock market has opened and is accepting requests for shares. So far only two companies have listed, BCEL Bank and EDL, the Lao Electricity Company, and offers for both of these have closed - they sold out amazingly quickly. Trading offically begins on 11 Jan.
Foreigners can buy shares, and I have done so. The BIG one that all are waiting for is the listing of Beer Lao. I have been told this will be about March/April.
Why am I posting this? Frankly, I think there is good money to be made by investing in certain stocks EDL sells hydro power to Thailand and China and is in the process of expanding. Beer Lao is a high quality product.

I would expect growth there, to bad about the electricity, you know the big guys jumped on that one. Did you have to enter the country to sit up your account?

Corruption, say like insider trading pump and dump schemes, if so I think you will find that about anywhere.

Fill us in on what the process is, please,

Post by **siddiq** » January 9, 2011, 1:06 am

rufus wrote:Level of corruption is equivalent to Thailand. I will post a link tonight.

Did you find the link or is corruption as endemic as Wazza tells us?

Post by **arjay** » January 9, 2011, 8:53 am

Bumper wrote:I would expect growth there, to bad about the electricity, you know the big guys jumped on that one. Did you have to enter the country to sit up your account?

Bumper, Rufus lives in Vientiane.

When I was there over Xmas I did notice an advert (invitation to buy) for the Electricity company stock in the Vientiane Times (previous week's edition). I vaguely recollect it being about the deadline at that time being extended.

The Vientiane Times (General News ) can be found here:
http://www.vientianetimes.org.la/
http://www.vientianetimes.com/Headlines.html

Post by **bumper** » January 9, 2011, 9:46 am

Well I guess I already have a piece of the action, I hold shares in Ratch (Thai Company), mentioned in the headlines Arjay posted.

Anywhere Government officials are not paid a good wage there will be corruption in some form. That being said if you review Arjay's links you will see a story of church people being held in jail for a illegal meeting. That's the scary part to me. It is a Communist Country, not developed yet like China and Vietnam

Doing research on businesses probably would prove to be difficult. Ok that's the bad stuff.

How about it being wide open now?

What are cost of shares, this could be a low cost market with a future ahead of it.

In investing you have to determine how much risk you are willing to take.

If I were involving myself in this it would be very small say 20K baht and see what happens. They are lot of things we don't know, are Capitol Gains Taxed. How easy is it to get the money out of Laos. Insider trading Demco is doing that right now buying it's own shares. The declare that on the SET and it's perfectly legal. When it is no declared that is illegal. That happens here as well. But, over time you develop contacts that can keep up to date on that.

Can you do same in Lao, I don't know. The electricity project is not some fly by night operation. China is funding a lot of that. There are Thai Contractors involved in construction. ITD being one, bit it seems to somewhere in the brain bucket that they pulled out.

It is a different world then what we see here. I once met a Chinese man from America who had spent a year on a fact finding tour, for sources of raw materials ect. The company finally settled on Buffalo hides to be used in leather projects. Never happened because Laos could not sit a number of how me hides could be delivered on regular basis.

As an investor who would you have to bribe? The second a guy said to me I had to give money under the table to buy a stock I would walk away.

Pump and dump those kind of schemes are happening right in her in Thailand nothing new about that. When you see a not so great company trading for 50 satang and hundred of million shares are being bought daily. What, do you think is going on.

But there are ways to track that right on the internet here. There not so sure.

So maybe lots of Opportunity and certainly a lot of questions to be answered.

Post by **mojoroy** » January 12, 2011, 9:46 pm

Never bought shares going to laos in couple weeks how do I buy them. Can I just buy them in capital. Are there brokers or something. Does anyone know. thanks

Post by **bumper** » January 13, 2011, 9:48 am

Come on Rufus you bought stocks what's the proceedure?

Post by **rufus** » January 14, 2011, 11:21 am

Have been away.
The applications have closed, but more companies will be listed. I was told Beer Lao will list in April.
BCEL went up 25% since 11/1 and EDL 10%.
You apply when the shares are open for subscription - you need to open a BCEL trading account, which they will do on the spot for you. You then apply to buy the shares - this was done either at ITEC or at the stockmarket. The certificateswere available for collection as of yesterday.
As far as corruption is concerned, I think you will find that Forbes actuually ranks Thailand as more corrupt than Lao.

Post by **parrot** » February 4, 2011, 6:05 pm

There's an interesting piece in NewMandela, titled Corruption and Media Exposure in Laos (scroll down to Feb 4)....echos what wazza mentioned above......might be good reading for anyone considering risking their money in the market there.
http://asiapacific.anu.edu.au/newmandala/

Post by **rufus** » February 4, 2011, 7:30 pm

Less corruption here than in LOS. By the way, had you bought BCEL shares in Dec you would bow have trebled your money.

Post by **vanglo** » November 15, 2012, 10:01 am

Can you provide broker contact information who I can buy some share of the Lao Stock Market?

Post by **bumper** » November 15, 2012, 11:06 am

People are looking toward Myramar as well. To much wild west for me.

Post by **wiking** » November 15, 2012, 3:59 pm

why you think that beer Lao will be listed, is 100% own off carlsberg

Post by **jackspratt** » November 15, 2012, 6:00 pm

wiking wrote:why you think that beer Lao will be listed, is 100% own off carlsberg

50% actually.

http://www.carlsberggroup.com/Markets/a ... /Laos.aspx

Post by **wiking** » November 16, 2012, 11:26 am

thanks - it was only what I read in a magazine in Vientiane - but I must have read wrong

and Carlsberg has part off pepsi also I was before thinking it was the beer Lao company - but wrong again

the Lao soft drink company limited wants to be the fastest growing and dominant refreshment beverage company in Laos
The High Quality and Superior Service for You at Home, at Work and at Play

Brief about Company:
Pepsi Cola was established in the United States of America in 1898. Since the first day, its taste and quality was apparent to public and quickly becoming one of the most popular drinks in the world. Pepsi Cola came

into Laos in 1960s in order to test the market. Due to its popularity among the people, the Lao soft drink company limited was established
in 1971 in Laos. Pepsi Cola Beverage International and the Lao Soft Drink Company Limited are associate business bodies. For that
reason, Pepsi Cola Beverage International provides production license to Lao Soft Drink Company Limited so all the products manufactured here are in the Pepsi Cola portfolio.

Company Shareholder:
In order to archive the Party’s opened-policy, in 1993 the Company launched a new joint-venture of which the Lao government held the shares for 30%, Loxley Public Company Limited for 30%, Italian-Thai Public Company Limited for 30% and Sermsuk Public Company Limited for 10%.
Later in 2005, Lao Soft Drink Company Limited changed its share holders. This time the Lao government’s share was 30%, Loxley Public Company Limited for 30%, private Lao investor, Mr. Viphet Sihachackr for 30% and Sermsuk Public Company Limited for 10%.

Lately, on the 31st of October 2007, the Company transformed its joint-venture by having Carlsberg BreweriesA/S as a new the share holder for 70% and the Lao government for 30%.

Post by **bumper** » November 16, 2012, 11:57 am

How many companies are now listed on the Lao Market?

Back to Myramar going be ton of money flowing there. Might get a shot at some of it by investing in Thai companies doing business there. Unless I miss my guess that will be the cheapest labor market in the region. Question how much will go to graft, Certainly the wild west. Wasn't that long ago that China was the wild west. I'm thinking that Thai's natural gas comes from there. There is cooperation in developing a deep water port with Thailand Last I heard ITD was in that.

I'm not in the market at the moment so not really up to speed. There are still three unknowns out there that are important. The EU., the U.S. and China all big players. I'm waiting in my mind high possibility of another recession. Bargain basement prices will come with that.

Anyone understand what is going on with Gold these days?

I thought I was going off topic, then I realized everything is connected these days. So I think I'm OK with this discussion. O will let the mods be the judge of that.

Post by **arjay** » July 21, 2013, 10:27 am

If Rufus is still about, I would be interested to know how the Laos stock market is progressing now, and are there many more stocks listed?