Daily Archives: August 6, 2021

The current rally in the domestic market comes from the strength of the bullish international market and Kyat weakening against the US dollar, according to Yangon Region Gold Entrepreneurs Association (YGEA). The global gold price stood at above US$1,813 per ounce, while the Central Bank of Myanmar set a US dollar exchange rate at an auction rate of K1,664, resulting in the gold price gain in the domestic market. The price of precious pure yellow metal is possible to stay in the bull market tracking the dollar gain and increase in the international gold market. It touches a high of K1,572,000 per tical (0.578 ounces, or 0.016 kilogrammes).

The price is possible to continue rising as the global rally happens yearly in the coming months, U Myo Myint elaborated. In January 2021, the gold price was ranged between the minimum of K1,316,000 per tical (28 January) and the maximum of K1,336,000 per tical (6 January). It reached an all-time high of K1,410,000 per tical on 3 February and hit the minimum of K1,340,000 per tical on 2 February. In March, the rate fluctuated between the highest of K1,391,000 (25 March) and the lowest of K1,302,000 (4 March). The price had registered the highest of K1,455,000 (30 April) and the lowest of K1,389,000 (1 April). The price reached an all-time highest of K1,709,000 (12 May) and the lowest of K1,447,000 in May. The price moved in the maximum of K1,575,500 (11 June) and the minimum of K1,543,000 (19 June).

Last month, it fluctuated between K1,562,300 (26 Jul) and K1,587,000 (K1,587,000), the gold traders said. According to gold traders, the local gold reached the lowest level of K1,310,500 (2 September) and the highest level of K1,314,000 (1 September). In October, the rate ranged between K1,307,800 (30 October) and K1,316,500 (21 October). The rate fluctuated between the highest of K1,317,000 (9 November) and the lowest of K1,270,000 (30 November). In December, the pure yellow metal priced moved in the range of 1,280,000 (1 December) and 1,332,000 (28 December). With global gold prices on the uptick, the domestic price hit fresh highs in 2019, reaching K1,000,000 per tical between 17 January and 21 February, crossing K1,100,000 (22 June to 5 August), climbing to over 1,200,000 (7 August-4 September), and then reaching a record high of K1,300,000 on 5 September 2019. 

Source: The Global New Light of Myanmar

The number of shares traded on the Yangon Stock Exchange (YSX) plunged to 36,855 shares in July 2021 and the trading value also slipped to K198 million, the YSX’s monthly report indicated. Under Section 4 of the Trading Business Regulations, the stock trading was closed from 17 to 25 July 2021 as the long public holidays for COVID-19 prevention, control and treatment activities. The market resumed on 26 July 2021 as usual. In June, 79,296 shares worth of K430.285 million were traded on the exchange. Amata Holding Public Co., Ltd. (AMATA) was newly listed on the exchange on 3 June, with the basic price of K4,500.

Last month, the 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), the Ever Flow River Group Public Co., Ltd (EFR) and AMATA were traded in equity market. The share prices per unit were closed at K8,900 for FMI, K3,300 for MTSH, K7,700 for MCB, K20,000 for FPB, K2,650 for TMH, K3,100 for EFR and K5,000 for AMATA, respectively. In February 2021, K442 million worth of 77,388 shares were traded on the exchange. The figures extended further drops to K110 million worth of 19,816 shares in March 2021. Then, the market slightly rose in April with K280 million worth of 42,964 shares. The stocks maintained in the bull market in May with 78,642 shares worth of K432.448 million as well. 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 keeping emergency savings, rather than investing the COVID-19 crisis and current political conditions, he added. Amid the COVID-19 crisis and political changes, Myanmar’s securities market has been able to continue operating without stopping trading. In 2020, the value of stocks traded on the exchange reached a peak of K1.48 billion in February, whereas trading on the exchange registered an all-time low of K552.9 million in November due to the COVID-19 resurgences in Myanmar, the exchange’s monthly report showed. A total of K12.6 billion worth of 1.87 million shares by six listed companies were traded on the exchange in 2020, a significant drop compared to 2019.

Over 2.4 million shares from five listed companies, valued K13.39 billion, were traded on the exchange in 2019, according to the annual report released by the exchange. Next, the Securities and Exchange Commission of Myanmar (SECM) has allowed foreigners to invest in the local equity market from 20 March 2020. 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 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. 

Source: The Global New Light of Myanmar