Two or three companies are prepping for Yangon Stock Exchange (YSX) listing, said U Htay Chun, a member of the Securities and Exchange Commission of Myanmar (SECM).
“Some companies are in final preparation stage of listing. The SECM is tightly screening matters for investor protection deemed necessary by YSX. For sample, Great Horgan has received permit by Myanmar Investment Commission. They have also signed power purchase agreement. Meanwhile, some are redrafting the constitution under the new Myanmar Companies Law. Some are making re-registration. Two companies are possibly to be listed soon”, he said.
Those companies preparing for YSX listing are likely to enter the YSX market next year. More listed companies are expected in late 2020.
In a bid to grow capital markets, a market promotion team will be formed with the financial assistance of Japan International Cooperation Agency to consult with the potential listed private and public companies for better understanding about listing procedure and benefits by providing necessary insights. They will provide consultations to convert the successful private companies to the public companies to enter the exchange market, said U Htay Chun.
“Of 330 potential listed companies, 40 have good corporate governance and they own over 100 shares. Therefore, the special task force is providing consultancy for them while preparing for pre-initial public offering stages”, he said.
The SECM is providing awareness raising on capacity building of the public companies. The SECM and International Finance Corporation signed a Memorandum of Understanding regarding the raising public awareness of corporate governance through a series of public conferences. Publicity awareness events will be conducted by the SECM, YSX and securities companies. And they will also assist in providing corporate governance training by sharing the best practices concerned with the capital markets and regulators as the areas of sustainable disclosure and investor rights. They will also attract institutional investors. Myanmar Institute of Director will be established to provide training for the directors to adopt the best practices of corporate governance and enhance corporate governance standards, U Htay Chun maintained.
Yangon Stock Exchange is still lackluster despite daily trading except market holiday. Capital market infrastructure still lacks. Only 15 per cent of 36,000 securities accounts are active. Stock trading this year is on the low side. September’s stock trading is estimated at Ks954 million, with trading volume of 218,595 shares.
In order for the stock market to grow in momentum, the government support is vital of importance. The regional countries Viet Nam and Thai governments are heavily involved in stock market, attracting public interest. With the support of government, more public companies will be enticed to participate in stock market and more institutional investors such as financing companies, investment banks, insurance companies will emerge, said U Thet Htun Oo, executive senior manager of YSX.
The lackluster stock trading on YSX is attributed to general economic climate, low income and lack of public awareness to encourage the public’s motivation.
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 YSX.
Since its establishment in March 2016, approximately 934 million shares have been traded, with estimated value of Ks113 billion.
At present, YSX is drafting to release notifications concerning foreign participation in the stock market.
By May Thet Hnin