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May 23, 2019

Trade on YSX drops by half in January

The value of stocks traded on the Yangon Stock Exchange (YSX) in January slid to K526 million from a record of K1.2 billion last year, according to the monthly report released by the stock exchange. Currently, five companies are listed on the exchange.
An estimated 89,570 shares were traded on the exchange in January, according to YSX.
In spite of promotion events for investors, trading on YSX has remained lackluster.
In 2016, shares of just three companies were traded on the YSX — First Myanmar Investment (FMI), Myanmar Thilawa SEZ Holdings (MTSH), and Myanmar Citizens Bank (MCB). One more public company, First Private Bank (FPB), listed on the exchange in 2017, but stock prices continued to decline. Last year, TMH Telecom Public Co. Ltd listed on the YSX.
Over 2.5 million shares of three listed companies were traded on YSX in 2016. The value of shares was estimated at K70 billion. Although the volume of shares traded rose to 2.6 million in 2017, their value was registered at just K22 billion. In 2018, 2.3 million shares of five listed companies were traded on the exchange. Their value was estimated at K11.5 billion, almost half of that registered in 2017, according to the annual report of the YSX.
In January, shares of FMI closed at K9,000, MTSH at K2,850, MCB at K7,200, FPB at K22,000, and TMH at K2,750.
Last year, the YSX doubled the stock trade matching time from two to four per day. In addition to this, the YSX held a promotional event for investors to increase the number of new investors and encourage existing investors to trade more actively by informing them about the financial reviews and future prospects of listed companies.
“Capital market infrastructure is still lacking in Myanmar. Only 15 per cent of 36,000 securities accounts are active. Stock trading this year has been on the lower side. For the stock market to gain momentum, government support is of vital importance. With the support of government, more public companies will be encouraged to participate in the stock market and more institutional investors such as financing companies, investment banks, and insurance companies will emerge,” said U Thet Htun Oo, the executive senior manager of the YSX told the Global New Light of Myanmar last year.

 

Htet Myat
(Translated by Ei Myat Mon)

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