Government’s support is crucial in driving stock market in countries like Myanmar

12 June 2019                     

U Thet Htun Oo, executive senior manager of the YSX said that the stock market in countries with the firm government’s support booms and so government support is needed to drive the Myanmar stock market.                                              

“If we learn from the stock market in Asia and Southeast Asia, we could see that government’s support is paramount in helping the exchanges thrive. So if the government could systematically culture the market, it will definitely grow. Vietnam would be a great example we should follow in terms of exchange market,” added U Thet Htun Oo.

Currently Myanmar stock market is struggling with a handful of investors trading at the Yangon Stock Exchange.

Yangon Stock Exchange was officially established in December 9th 2015 and the stock trading began in March 2016.

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).

“About 10 more companies show interest and they are going through the procedures to become listed companies. They will join perhaps, around next year. Another logistics company, which is also planning to be listed at YSX, is half way through the procedures and expected to join in this year.”

Myanmar Agribusiness Public Corp Ltd (MAPCO) announced that it will go public only after 2020 general election, keeping an eye on the election result.

Infrastructure builder Great Horkan Co has been considering listing on the YSX since September 2018.

The companies seeking a listing monitors the things such as the trading of foreign investors on the YSX.

“The notification to allow foreign investors to trade at the YSX has been under scrutiny. It is delayed since the Central Bank and the Union Attorney General office are carefully considering the notification before it’s out.”

Myanmar stock market is currently running with individual investors without established institutional investors, leaving the stock market inactive.

May saw a total of 700,000 shares were traded.

The Myanmar Stock Price Index, or Myanpix, closed at 463 after June 10th – up 1.36 from the usual base line. Only five companies have listed so far on the YSX, which has roughly 100 active investors among more than 30,000 account holders.

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.

Arker Kyaw