The value of shares traded on the Yangon Stock Exchange (YSX) in August sank to the lowest level of K747 million this year, according to YSX’s monthly report. The trading volume also plunged to an eight-month low of 118,850 shares in August. 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, and a market observer points out.
Moreover, Myanmar people like to invest in property, currency and gold market. Most of the local people are accustomed to investing in the gold market rather than the stock market. They will buy them if they have extra money. The cash out when they need, he added. In a bid to contain the spread of COVID-19 and promote the development of Myanmar capital market through the digital platform, the first Online Exhibition and Live Seminar YSX Expo 2020 will go live on 12 and 13 September 2020. Those interested can make registration through https://ysx.expo2020.online/. The expo will include more than ten digital booths of listed companies and securities companies, live panel discussion to cover economic and investment situation, investors’ perspective amid the COVID-19 crisis and situation of foreigners’ participation in Myanmar capital market, interview talk with executives of the listed companies, lucky draw program and free online stock trading account opening, the YSX stated.
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 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 exchange 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 an estimated value of K1.3 billion and then, it fell to $1 billion with 125,137 shares in July. Last month, the exchange witnessed the lowest level of stock trading, the exchange’s monthly report showed. Next, the Securities and Exchange Commission of Myanmar (SECM) allowed foreigners to invest in the local equity market in March 2020. Foreigners have held 52,843 shares in the equity market as of 2 September. In August, the share prices of the listed companies on the exchange, except EFR, also showed a decrease compared with the previous months. The share prices of FMI were closed at K9,800 per unit, MTSH at K3,700, MCB at K7,800, FPB at K21,5000, TMH at K2,700 and EFR at K3,050.
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. To boost the trading, the YSX had doubled its stock trade matching time from two to four per day last year. The exchange launched seven times matching per day on 26 March 2020.
Since 2017, it has held promotional events to attract new investors and encourage existing investors to trade more actively. 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. 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)