Foreigners hold over 4.5 million shares in equity market so far

According to statistics released by the exchange, foreign investors have purchased 4,502,760 shares of four listed companies on the Yangon Stock Exchange (YSX) as of 9 March 2021. The Securities and Exchange Commission of Myanmar (SECM) has allowed foreigners to invest in the local equity market from 20 March 2020. 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, and Ever Flow River Group Public Co., Ltd (EFR) — are available for local investors for trading. FMI, MTSH, TMH and EFR accepted foreign shareholding, and FPB is for block trade only. The foreign shareholding ratio of the companies on the exchange, except FMI, is less than one per cent.

The upper limit for FMI’s foreign shareholding amount is at 14 per cent, with 4,635,357 shares. The foreign investors are about to reach the limit for shareholding. Consequently, the status of buy order acceptance is suspended on 1 December 2020. As of 9 March 2021, foreigners hold 4,458,136 shares of FMI, 32,054 shares of MTSH, 5,445 shares of TMH and 7,125 shares of EFR. The SECM, under the Ministry of Planning and Finance, issued a notice on 12 July 2019, announcing that foreigners would be allowed to invest in shares listed on the YSX.  After opening bank and securities accounts, an investor can send buying/selling orders under the stock trading rules stipulated in the Trading Business Regulations, the SECM notified.

Last year, the senior executive manager of the Yangon Stock Exchange highlighted how foreign participation would entail better capital inflows and a long term and sustainable investment. It would also encourage good corporate governance and support market orientation, he added.
Regarding share trading, the foreign investors must strictly comply with the rules stipulated by the Central Bank of Myanmar. The security companies will monitor the daily trades of foreigners in keeping with the rules and regulations so that they do not exceed the limit set for each listed company.  Under Section 42 (a) of the Securities and Exchange Law and Section 4 of the Trading Participant Business Regulations, the YSX has granted trading qualifications to the following securities companies — Myanmar Securities Exchange Centre Co. Ltd. (MSEC), KBZ Stirling Coleman Securities Co. Ltd. (KBZSC), CB Securities Limited (CBSC), AYA Trust Securities Co. Ltd. (AYATSC), KTZ Ruby Hill Securities Co. Ltd. (KTZRH), and UAB Securities Limited (UABSC).

According to the stock exchange, investors have to send their buy or sell orders to the YSX through the securities companies who have been issued a license by the SECM as well as a trading qualification by the YSX. The YSX was launched four 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. 

Source: The Global New Light of Myanmar

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Heightened coronavirus measures in China hurts watermelon exporters

As China is stepping up the coronavirus containment measures in the border areas, watermelon exporters are suffering. Some watermelon trucks are returning from the Myanmar-China North-East border checkpoint as the watermelon is not traded, and the truck drivers no longer bear the cost and tariff on the China border. Additionally, starting from 20 April 2021, the coronavirus test is mandatory for cross-border traders. Following the coronavirus cases on the border in Ruili of China to restrict border access at the Mang Wein checkpoint. Ruili-Kyalgaung river crossing is also closed. Furthermore, China imposed the lockdowns on Kyalgaung and Ruili cities. Kyinsankyawt and Wan Ding posts also restricted trading, truck drivers said. Around 400 trucks of watermelon and muskmelon previously entered China via Kyinsankyawt and Wan Ding posts.

For now, only a hundred trucks loaded with other goods are seen in the border area. Watermelon and muskmelon will be harvested up to May-end across the country, except Kayah and Chin states. Therefore, the cross-border fruit depots suggest that the growers harvest the watermelon depending on the market condition. As border post is sluggish amid the coronavirus resurgence, many watermelon trucks are stranded in Muse. Consequently, watermelon supply exceeds the demand, leading to possible market failure, Khwar Nyo Fruit Depot warned. A truckload of watermelon (855 variety) fetches 45,000-65,000 Yuan in mid-March. At present, watermelon price is drastically plunging, and it does not even cover the truck freight rate.

Myanmar’s watermelon market earlier relied only on China. Myanmar shipped 45 tonnes of seedless watermelon to the Dubai market in December 2020 and January 2021. After the country achieves success in the Dubai market, Myanmar plans to expand its market to Hong Kong SAR, the UAE and Qatar, the association stated. On 5 January 2021, 105th mile Fruit Wholesale Centre released a statement that the number of watermelon and muskmelon trucks for exports is to be set to govern the market. During the previous financial year, the growers and the traders suffered the loss due to the price instability and transportation difficulties triggered by the COVID-19. Myanmar yearly exports over 800,000 tonnes of watermelon and about 150,000 tonnes of muskmelons to China, the association stated. 

Source: The Global New Light of Myanmar

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Maritime trade drops by $4.3 bln in H1

The value of Myanmar’s maritime trade over the first half (1 Oct-2 Apr) of the current financial year 2020-2021 sank to US$10 billion, a drastic drop of over $4.3 billion as against the year-ago period, according to the Ministry of Commerce. While maritime exports were valued at $4.06 billion, imports have registered at $6.116 billion. Compared to the same period in the 2019-2020 fiscal year, imports fell by $2.78 billion, while exports reported a decrease of $1.53 billion.

Meanwhile, the value of trade through the border this FY was estimated at $5.6 billion, a decrease of $264 million as against a year-ago period. Myanmar witnessed a slump in exports and imports triggered by the coronavirus pandemic. Both sea trade and border trade dropped amid the coronavirus impacts and political changes. The neighbouring countries tightened the border security and limited the trading time to contain the spread of the virus. For maritime trade, disruption in the logistic sector, the suspension of some ocean liners and the pandemic-induced container shortage scaled-down the maritime trade somehow.

The country’s total external trade touched a low of $15.78 billion, which plunged from $20.36 billion recorded in a year-ago period. Myanmar’s sea trade generated $26 billion from an overall trade value of $36 billion in the last FY 2019-2020, the Ministry of Commerce’s statistics indicated. Myanmar exports agricultural products, fishery products, minerals, livestock, forest products, finished industrial goods, and other products. At the same time, it imports capital goods, consumer goods, and raw industrial materials.  The country currently has nine ports involved in sea trade. Yangon Port is the main gateway for Myanmar’s maritime trade. It includes the Yangon inner terminals and the outer Thilawa Port.

Source: The Global New Light of Myanmar

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Myanmar-India border trade surges this FY

Border trade between Myanmar and India hit US$155 million as of 2 April in the current financial year 2020-21 ending September, said a statistical report of Myanmar’s Ministry of Commerce. The border trade during the period increased by $78.8 million compared with the same period of the previous fiscal year. Myanmar-India total border trade was shared by Myanmar’s export of $154 million and its import of $0.7 million.

Some of the border trade zones between Myanmar and India closed the border in March 2020 due to COVID-19, including the crossing between Tamu township and the Indian town of Moreh. However, the border trade resumed on 6 January as COVID-19 infections in the area have declined. Most India-Myanmar border trade passes through the Tamu crossing and the Reed crossing in Chin State. In contrast, a significant part of the bilateral trade is delivered through ships.

According to the Ministry of Commerce, the total trade volume from Tamu border trading post in FY 2020-2021 was $31.15 million, with exports valued at $30.76 million and importing $0.39 million. Total trade volume via the Reed border trade post in the same period was $124 million, with exports valued at $123.66 million and import of $0.34 million. Myanmar mainly exports to India fruits and vegetables, marine and forestry products while importing from India the medicines, electronic products, motorbikes, cotton yarn, non-alloy steel and other construction materials.

Source: The Global New Light of Myanmar