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January 18, 2019

Value of trade on YSX drops in 2018

A visitor looks at the electronic board showing the stock exchange rate at Yangon Stock Exchange. Photo: Phoe Khwar

The value of share trading on the Yangon Stock Exchange in 2018 declined to K11.5 billion from K22 billion in 2017, according to data from the YSX. While five-listed companies traded 2.3 million shares in 2018, four-listed companies traded 2.6 million shares in 2017.
In 2016, three-listed companies traded over 2.5 million shares estimated at K70 billion, according to the annual report of the YSX. While trading volume increased in 2017, the value of trade registered a decline compared with the previous year.
In 2018, the stock trading value touched a high of K1.5 billion in August, and reached an all-time low of K666 million in June.
In 2016, only three companies — the First Myanmar Investment (FMI), the Myanmar Thilawa SEZ Holdings (MTSH), and the Myanmar Citizens Bank (MCB) — traded shares on the YSX.
Although one more public company, the First Private Bank (FPB), entered the YSX market in 2017, stock prices registered a decline. In 2018, the TMH Telecom Public Co. Ltd. joined the YSX.
The price of a single share of FMI fell from K12,500 on 2 January, 2018, to K10,000 on 28 December, 2018. The share price of MTSH declined from K3,000 to K2,950.
The price of MCB shares also dropped from K8,200 on 3 January, 2018, to K7,400 on 28 December, 2018. While the TMH debuted at K3,250 on the YSX, its share price fell to K2,850 on 28 December, 2018.
In 2018, the YSX doubled stock trade matching times from two to four a day. The exchange also held a promotional event for investors to attract new investors and encourage existing investors to increase trade. The financial review and future prospects of companies listed on the exchange were discussed at the event.
“Myanmar’s capital market infrastructure is still lagging. Only 15 per cent of the 36,000 securities accounts are active. Stock trading was on the low side in 2018. In order for the stock market to grow, government support is of vital importance. With the support of the government, more public companies will be enticed 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, senior executive manager of the YSX.

 

—Htet Myat (Translated by Ei Myat Mon)

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