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Laos to open stock market
[Straits Times] COMMUNIST Laos is set to open a stock market on Tuesday, hoping it will attract capital to its largest enterprises and thus boost the economy of one of the world's poorest nations.The Lao Securities Exchange, headquartered in the capital of Vientiane, will debut with shares offered by just two state-owned enterprises - Electricite du Laos Generation Company (EDL), the country's major energy enterprise, and the Banque Pour Le Commerce Exterieur Lao, official Lao media said on Monday. Foreign participation will be limited. South Korea's Korea Exchange is investing US$9.8 million (S$12.8 million), or 49 per cent of the venture, most of it for technology systems and training, according to the Seoul-based stock market operator. The Bank of Laos, the country's central bank, is investing $10.2 million, or 51 per cent. Neighbouring Thailand also offered assistance. 'There's a twofold reason. The exchange will allow an alternate source of capital other than banks and allow public participation in the growth of the economy,' said Lorraine Tan, director of equities research at Standard & Poor's in Singapore. 'A broad capital market will certainly help economic development.' But she said that it would take some time for foreign equity to flow in. 'You just can't do that by opening up a stock market,' Ms Tan said. Posted by: Fred 2011-01-11 |
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