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November 14, 2019

YSX to form special task force for new companies entering market

Electronic board showing stock information at YSX in Yangon. Photo: Phoe Khwar
Electronic board showing stock information at YSX in Yangon. Photo: Phoe Khwar

The Yangon Stock Exchange (YSX) will form a special task force, in cooperation with Japan International Cooperation Agency (JICA), to provide consultation to new companies that want to enter the stock exchange, said an official from YSX during the second-year anniversary celebrations of the YSX held on 25 March.
At the ceremony, Myanmar Securities Exchange Commission Chairman and Deputy Minister for Planning and Finance U Maung Maung Win said, “Our country is still in the early stage of development and is yet to gain momentum, but will do so soon. The country is promoting the YSX market, and so, has formed a special task force to provide consultancy for new companies who want to list themselves with the exchange.”
“Companies that have the potential to be listed on the exchange have to hire a law and an accounting firm to register with the stock exchange. This is a complicated task (for an ordinary company), so the special task force will provide a one-stop service for such companies. This group will provide consultation to new companies,” said U Thet Htun Oo, executive senior manager of YSX.
Currently, five companies have listed on the YSX in two years. They are First Myanmar Investment Company, Myanmar Thilawa SEZ Holdings Public, Myanmar Citizens Bank, First Private Bank and TMH Telecom Company. Five more companies are planning to register with the YSX this year. During this two-year period, the stock market saw more than 5.2 million shares being traded, at an estimated value of Ks93 billion.
Although the YSX market is in a fair condition, the market still needs to try very hard to catch up with other Asian region stock markets, said U Yin Myo Zaw, Managing Director of YSX.
“We could not set up a perfect stock market in a short period. To become a perfect market, we need a fair number of investors and timely market information must be provided. There should be no monopolistic behaviour in the market,” he added.
Author and financial advisor U Kyaw Myo Tun noted that stock exchanges in other countries also took three to four years to run smoothly, and these also started with a small number of listed companies. “Although more security companies and listed companies should be attracted to the Myanmar stock exchange market, it is more important to have a qualified company listed,” he said.
Regulators had granted permission for online trading in the YSX by the end of 2017, with an aim to attract more investors to the country’s stock market, as well as raise the volume (value) of stock trading. Due to this, the number of trade orders increased 30 per cent last year.
The YSX will soon increase its number of trade matching sessions from two to four per day to raise the trade volume and attract more investors.
According to the newly passed Myanmar Companies Law, foreign investors are permitted to buy up to 35 per cent shares in a local company. This rule will come into force on 1 August 2018, and the YSX is drafting a system to manage the participation of foreigners in the exchange.
Moreover, the YSX is cooperating with developed Asia region stock exchange markets and collaborating with the ASEAN Stock Exchanges CEOs’ conference, ASEAN Capital Market Forum and stock exchanges in the Mekong region, said U Yin Myo Zaw.
The YSX is also conducting awareness talks and stock exchange training sessions in Yangon and other regions to increase the number of investors in the market. More than 50 training sessions have been conducted recently, he added.
The YSX is also arranging to sign a contract with Mono Tech Company, e-Trade Myanmar and Zee Kwet to share stock exchange information through the internet, telephone and SMSes.
The YSX saw more than 20,000 shares, worth some Ks100 million, being traded daily in the 2016-2017 fiscal year (FY). In the 2017-2018 FY, only some 10,000 shares, worth some Ks70 million, were traded daily.

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