Share value in Yangon's stock market dropped due to expansion of facilities, prompting the need to boost the stagnant stock market

Trade volume on Yangon’s Stock Ex­change (YSX) has slowed to K1.8 billion in September; 0.5% less than in August.

Trade peaked in March at K3 billion and has since slowed. Each month af­ter that, volume hovers around an average of only K1 billion.

Confidence in the stock market typically sees a seasonal boost with the ending of monsoon sea­son. Share volume for Myanmar Thilawa SEZ Holdings Public Limited (MTSH), and First Myan­mar Investment Co., Ltd (FMI) nearly doubled in August, reaching K2.3 bil­lion; K1 billion more than in July. However, Sep­tember saw their trade volume slow down.

FMI share value in Au­gust was roughly K676 million, but in September slid down to K469 mil­lion, a decrease of K207 million, that the Myan­mar Securities Exchange Supervisory Committee (MSESC) has attributed to the expansion of its fa­cilities.

The 'seasonal boost' also occurred at FMI, where assets in July went from K558 million to K670 mil­lion in August, however, First Private Bank Lim­ited led the YSX’s listed companies in terms of as­set value and trade activ­ity.

As of October 11, 2017, a share of FMI costs K13,000; MTSH’s share price is K3,450; Myan­mar Citizen Bank’s shares list for K8,400 each; and First Private Bank’s share cost of K24,500 each.

U Kyi Shein, a stock trader at YSX since its in­ception, said: “If the share value is slowing down, the number of trades decreas­es because of the public’s insufficient trust with the YSX. Some existing stock traders are active, but there are no new stock traders in the YSX.”

If the MSESC allows foreign companies to sell their Initial Public Of­fering (IPO) at YSX, and YSX has more than just the four currently listed, the trade volume will in­crease with demand, U Kyi Shein added.

Currently, there are four YSX listed public companies: First Myan­mar Investment (FMI), Myanmar Thilawa SEZ Holdings Public Limited (MTSH), First Private Bank (FPB), and Myan­mar Citizen Bank (MCB). Combined these entities are selling 8,192 shares with the market capital of $457 million.

The Securities and Ex­change Commission of Myanmar (SECM) said that TMH Telecom Public Co., Ltd will be the fifth company listed on the Yangon Stock Exchange (YSX). Another private company is planning to be listed at YSX soon.

(Myanmar Business News: https://www.mmbiztoday.com/articles/yangon-s-stagnant-market-needs-boost )

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