The Yangon Stock Exchange (YSX) will increase its time trade matching sessions from two to four in the hopes of raising the trade volume and attracting more investors.
The two new hours for time trade matching are 10 am and 12 pm, which will be added to the existing hours of 11 am and 1 pm, once the YSX receives approval from the Securities and Exchange Commission of Myanmar.
U Thet Htun Oo, executive senior manager of YSX, said that increasing the time trade matching to four hours would enable dealers, brokers and other market participants to sell at four different prices. “Customers will be able to make profits,” said U Thet Htun Oo.
“I want to create the kind of environment that will excite customers and encourage more deals,” he added.
The YSX had conducted surveys and discussions with security companies, and held tests with internal operators before increasing the matching time hours. After gathering results through the first wave of surveys, further discussions were held with the Japan Exchange Group (JPX) and the Daiwa Institute of Research (DIR).
Five companies are currently listed on the YSX. They are First Myanmar Investment Company, Myanmar Thilawa SEZ Holdings Public, Myanmar Citizens Bank, First Private Bank and TMH Telecom Company.
The stock market saw more than 20,000 shares being traded daily in the 2016-2017 fiscal year period, at an estimated value of Ks100 million. The stock market in the 2017-2018 FY period has seen only 10,000 shares traded daily, with their estimated value being Ks70 million.
“The attitude of the majority of the general public here is to wait for the annual dividend of a company’s profit, instead of trading for capital gain. A large percentage of these people hold on to their shares, instead of trading, and this is one reason the stock market is slow. This is the opposite of what happens in most other countries. People do not care about the company’s dividends and trade to earn a profit, instead,” said U Thet Htun Oo.
U Thet Htun Oo said there were more than 100,000 shareholders, but only 33,000 were listed. Only 300 to 500 participate in trading each day.
The decline of interest in the stock market and the fall of share prices can be attributed to the poor general economic climate, as well as the low basic income and lack of motivation among the public. Officials from the YSX said they would raise awareness and conduct workshops to remedy this situation.
By May Thet Hnin