Myanmar Unprepared for Stock Market: Economist

Trading of stocks at the Yangon Stock Exchange (YSX) is expected to begin in March, giving Myanmar people another option to invest their money. Currently, people invest in the property market or the currency market, however, they are less likely to move their investments into the new stock market, a local economist said.

“All of the six listed companies have to try harder in order for the Yangon Stock Exchange to operate successfully. They should try to attract local investors to invest in the stock market,” local economist Dr Aung Ko Ko told Myanmar Business Today.

“Myanmar people are familiar with investing in property market, dollar market and gold market. They think these are easy and safe investments,” he added.

He said investors are always looking for a better market to invest and they will move their investment to the stock market depending on the success of the Yangon Stock Exchange.

“Normally, investments flow through from one market to another like the stock market, property market, bond market, money market or commodity market. Currently, many investments are not likely to move to the stock market. It depends on the profit margin that they can gain from the stock market,” said Dr Aung Ko Ko.

First Myanmar Investment (FMI) Company, First Private Bank Limited, Great Hor Kham Public, Myanmar Agribusiness Public Corporation (MAPCO), Myanmar Citizens Bank and Myanmar Thilawa SEZ Holdings (MTSH) Public are currently listed in Yangon Stock Exchange.

Gold traders say it would be hard for YSX to attract people towards the stock market and move them away from gold.

“Myanmar people are not familiar with investing in the stock market. However, even street vendors know how to invest in the gold market. They will buy gold if they have extra money and they will sell the gold if they need money. They also can buy and sell gold easily in their townships,” U Kyaw Win, secretary Myanmar Gold Entrepreneurs Association, told Myanmar Business Today.

Source: Myanmar Business Today

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