Corporate profit results disclosure in late June stirs up the stock market

10 July 2019

The companies disclosed their corporate results at the end of June and this stirred up the stock market.

Stock trading saw some changes brought about by the results disclosure.

Currently there are five companies listed at the Yangon Stock Exchange and MYANMAR THILAWA SEZ HOLDINGS (MTSH) is leading the market for now.

U Thet Htun Oo, executive senior manager of the YSX explains, “According to the new Myanmar Companies Law, companies, except banks, are required to disclose their corporate profit results in June. They disclosed balance sheet, profit and loss, and so this month brought a shake to the public. So trading on the exchange had some changes due to the results disclosure."

The listed companies have boosted their momentum in raising awareness and knowledge by organizing frequent seminars to engage with media and the public.

On Monday, MYANMAR THILAWA SEZ HOLDINGS (MTSH) organized a media conference and drew considerable interest.

He also continued to explain why MTSH is leading the stock market.

"MTSH is currently doing best on the market for now. High corporate profits. High dividend rate. And their future plan sees a great number of positive results."

YSX and Government also launched a new task force -- funded by the Japan International Cooperation Agency -- with a mandate of promoting listings and helping the country’s companies see the benefits of joining the YSX.

YSX is currently trading the stock shares of the 5 companies; namely First Myanmar Investment Public Co., Ltd.(FMI), Myanmar Thilawa SEZ Holdings Public Ltd.(MTSH), Myanmar Citizens Bank Ltd.(MCB), First Private Bank Ltd.(FPB), TMH Telecom Public Co., Ltd.(TMH).

He added that compared to previous months June was the month with the liveliest trading.

"In June, for normal trade, 233994 shares were traded, which is worth of 1328 million kyats. In block trade, 429345 shares worth of 3135 million kyats were traded. So in both trading, a total of 663, 339 shares worth of 4463 million kyats where traded. Trading in June is quite livelier than previous months."

According to Union Tax Law, the listed companies who enter the stock market now enjoy 5 % tax reduction but we have been noted that more reduction in tax and support from government is required to promote this culture.

Also, the growth of the capital market is vital for the country’s economic growth and the government should be well aware of it and provide more support.

 

Arker Kyaw