Foreigners stock trading set to start in November

07 October 2019

According to Yangon Stock Exchange's recently rolled out framework and schedule (FS), the foreigners will be permitted to invest in shares on YSX starting from November.The foreigners living in Myanmar will be able to start investing with the FS set to be effective from November 2019.

According to FS, the foreigners will be permitted to invest up to 35% of the shares of the YSX-listed companies.

U Thet Htun Oo, YSX, Executive Senior Manager said, "As the first phase, the stocks will be traded to the foreigners living in the country. We are not waiting for the notification which will be published by security exchange committee

 In order to boost the foreign investment, foreigners are allowed to directly invest in the shares of the stocks on the Yangon Stock Exchange. We recently published a framework and schedule to assist this move. We have been preparing the process since the notification allowing the foreigners to invest was out. The FS will be effective starting November and the foreigners will be able to start investing at that time."

The percentage that foreign participation each listed company allows will be managed by the YSX and respective securities houses.

"The number of foreigners living in Myanmar is still low. So I am not sure how big of an impact this will bring to the stock market. We have uploaded the information on the listed companies and research on YSX website. So it's advisable that they scrutinize the information."

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).

U Thet Htun Oo also said the trading volume has also increased in September.

"In normal trading, 421,358 shares were traded in September, that is 2.74 billion kyats worth of shares were traded.

In Block trading, 70,000 shares worth of 535 million kyats were traded. So in total, 491358 shares worth of 3.283 billion kyats were traded. MTSH is still the leading listed companies in terms of the shares traded.”

In 1996, Myanma Economic Bank and Daiwa Institute of Research Ltd. (DIR) formed the Myanmar Securities Exchange Centre Co., Ltd. (MSEC) with the final goal of establishing a stock exchange.

In 2012, The Central Bank of Myanmar (CBM), under the Ministry of Planning and Finance Daiwa Institute of Research Ltd. (DIR) and Japan Exchange Group, Inc. (JPX) signed an MOU to develop human resources and provide technical assistance for the development of financial and capital market in Myanmar.

Yangon Stock Exchange Joint-Venture Company Limited (YSX) obtained permission of foreign investment from the Myanmar Investment Commission (MIC) in 2014.

 Arker Kyaw