Stock trading value on YSX extends drops in November

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The volume of shares traded on the Yangon Stock Exchange (YSX) sank to the lowest level of K552.9 million in November this year, with 107,028 shares, the YSX’s monthly report indicated.
In January 2020, 196,836 shares worth K1.25 billion were traded on the exchange while 188,919 shares, with an estimated value of K1.48 billion, were traded on the deal in February and 228,913 shares valued K1.42 billion were traded in March respectively. It touched the lowest of K902 million with 173,808 shares in April. It rose to K1.2 billion with 200,416 shares being traded in May. The share volumes traded on the exchange surged to 221,682 in June, with estimated value K1.3 billion and then, it fell to K1 billion with 125,137 shares in July. In August, the exchange witnessed a low of stock trading value at K747.5 million, with 118,850 shares traded. The value slightly rose to K838.67 million, with 85,237 shares on the exchange in September. It continued drops in October with 85,630 shares worth K673.5 million, the exchange’s monthly report showed.
At present, shares of six listed companies — First Myanmar Investment (FMI), Myanmar Thilawa SEZ Holdings (MTSH), Myanmar Citizens Bank (MCB), First Private Bank (FPB), TMH Telecom Public Co. Ltd (TMH) and the Ever Flow River Group Public Co. Ltd (EFR) — are being traded on the exchange.
In November, the share prices of FMI were closed at K9,900 per unit, MTSH at K3,700, MCB at K8,400, FPB at K22,000, TMH at K2,700 and EFR at K3,900 respectively.
The stock markets worldwide have reported their largest declines since the 2008 financial crisis. Similarly, the local equities market is also scared by the COVID-19 crash, a market observer points out.
At present, people are putting money in savings, rather than investing amid the COVID-19 crisis, he added.
Next, the Securities and Exchange Commission of Myanmar (SECM) has allowed foreigners to invest in the local equity market from 20 March 2020. The foreign shareholding amount stood at 4,509,475 shares of three listed companies on the exchange as of November-end.
Furthermore, YSX launched pre-listing board (PLB) on 28 September 2020 to provide unlisted public companies with fund-raising opportunities and build a bridge toward listing on YSX, YSX stated.
The YSX was launched three years ago to improve the private business sector. It disseminates rules and regulations regarding the stock exchange and knowledge of share trading through stock investment seminars. The stock exchange has also sought the government’s support to get more public companies to participate in the stock market and help more institutional investors, such as financing companies, investment banks, and insurance companies, to emerge.
Amid the COVID-19 crisis, Myanmar’s securities market has been able to continue operating without stopping trading.
A total of 2.4 million shares worth K13.39 billion were traded on the YSX in 2019, a significant increase compared to the previous year, according to the annual report released by the exchange. — Ko Htet (Translated by Ei Myat Mon)

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