Three more companies expected to list on YSX next year

Three more companies are likely to get listed on the Yangon Stock Exchange (YSX) in 2020, according to the Securities and Exchange Commission of Myanmar (SECM).

“The companies will be listed on the exchange in early 2020. They must file a prospectus with the SECM to receive approval for offering shares. The listing process takes approximately 1 year and 6 months,” said an official with the YSX at the Media Workshop for Myanmar Capital Market, held on 5 December at the stock exchange.

The SECM will strive to encourage companies to list on the YSX and proceed with foreign participation on the exchange, he added.

At present, shares of five listed companies — First Myanmar Investment (FMI), Myanmar Thilawa SEZ Holdings (MTSH), Myanmar Citizens Bank (MCB), First Private Bank (FPB), and TMH Telecom Public Co. Ltd — are being traded on the stock exchange. The value of shares traded on the Yangon Stock Exchange (YSX) declined sharply last month to K992.69 million compared with K1.36 billion recorded in October. While 141,361 shares were traded on the exchange in November, 259,245 shares were traded in October.

The value of stocks traded on the exchange had reached a peak this year in September at K2.47 billion. A total of 421,358 shares were traded on the YSX that month. In November, the shares of FMI closed at K12,000, MTSH at K3,850, MCB at K8,000, FPB at K25,500, and TMH at K2,700. On 12 July, the SECM, under the Ministry of Planning, Finance and Industry, had issued a press statement announcing that foreigners would be allowed to invest in shares listed on the YSX within a few months and currently, they are making preparations for this. The YSX held a seminar on Foreign Participation in Myanmar Stock Market on 14 December at the stock exchange.

At the seminar, U Than Aung, founder and CEO of Maximax Solution Corporate Advisory and Executive Learning Institute, made a presentation on Investors’ Perspective on Foreign Participation in Myanmar Stock Market. U Thet Htun Oo, executive senior manager of Yangon Stock Exchange, discussed the advantages of foreign participation in the Myanmar stock market compared with experiences in other developing countries, highlighting better capital inflow, long term and sustainable investment, encouragement to good corporate governance, and support for market orientation. He also discussed trends on the YSX.

In accordance with Section 42(a) of the Securities and Exchange Law and Section 4 of the Trading Participant Business Regulations, the YSX has given trading qualification to some securities companies — Myanmar Securities Exchange Centre Co. Ltd. (MSEC), KBZ Stirling Coleman Securities Co. Ltd. (KBZSC), CB Securities Limited (CBSC), AYA Trust Securities Co. Ltd. (AYATSC), KTZ Ruby Hill Securities Co. Ltd. (KTZRH), and UAB Securities Limited (UABSC).

According to the exchange, investors have to send their buying or selling orders to the YSX through securities companies which have a securities license issued by SECM as well as a trading qualification provided by YSX.

The stock exchange was launched three years ago to improve the private business sector. It disseminates rules and regulations regarding the stock exchange and knowledge of share trading through stock investment seminars.

The YSX has doubled its stock trade matching time from two to four per day. In addition to this, it has held promotional events to attract new investors and encourage existing investors to trade more actively. The YSX has also sought the government’s support to get more public companies to participate in the stock market and to help more institutional investors, such as financing companies, investment banks, and insurance companies, to emerge.— Ko Htet (Translated by Ei Myat Mon)

Source: Global New Light of Myanmar

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