October 20, 2017

First-time investors need to know share potential—stock analysts

The Yangon Stock Exchange is generating a flurry of excitement among potential investors to invest in the country’s new businesses. Despite becoming operational since its opening, the start-up of selling shares is slated for late February or early March 2016.
The Yangon Stock Exchange is generating a flurry of excitement among potential investors to invest in the country’s new businesses. Despite becoming operational since its opening, the start-up of selling shares is slated for late February or early March 2016.

ANALYSTS have urged potential individual capital investors wanting to enter into the Yangon Stock Exchange to try to fully understand how listed companies work prior to making investments in order to help stabilize the new marketplace.
The country’s first stock exchange was launched early December with six listed companies and one underwriter. The commencement of trading is slated for late February or early March 2016.
U Saw Naing (Applied Economics) called on first-time investors to make a careful study of the marketplace and listed companies before jumping in to buy shares on the exchange.
He stressed the need to choose the companies best suited to the investor and those that have the best growth potential before investing in stocks.
In an interview with the writer, he told The Global New Light of Myanmar daily that investing in the stock market is not ‘a business that can reap profit within a short period of time’.
During his talks on the opportunities and challenges of the Yangon Stock Exchange on Sunday, U Soe Thein, retired deputy director-general of the Ministry of Finance, warned potential traders not to buy shares of companies that they don’t know very well.
Among the things one needs to know before investing in the capital market, the market expert highlighted, is the importance of the current profitability of the company and the expected future profitability or potential of that company.
First-time investors must know what a good market portfolio and company outlook looks like before they buy shares, he added.
The listed companies revealed at the opening ceremony of the YSX include First Myanmar Investment, First Private Bank, Great Horkham, Myanmar Agribusiness Public Corporation, Myanmar Citizens Bank, and Myanmar Thilawa SEZ Holdings.
In his address at the launch of the YSX, Deputy Minister for Finance Dr Maung Maung Thein said that the listed companies will not be rushing into stock trading, stressing the need for a smooth start.
Among 10 securities companies selected to act as players in the capital market, KBZ Stirling Coleman Securities Co., Ltd has been licensed to provide services to the new marketplace for Myanmar.
The Yangon Stock Exchange, which has been capitalised at 32 billion kyats (over US$ 32 million),  is being operated by the Myanmar Economic Bank which holds a controlling share of 51 percent in partnership with the Japan Exchange Group which holds 18.75 percent and the Daiwa Securities Group which holds 30.25 percent.

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