Posts in category: ECONOMY

The equity market rose in February 2022 against the trading in January, the Yangon Stock Exchange’s price data indicated. A total of 61,435 shares valued at US$282 million by seven listed companies were traded on the exchange in January 2022 and the trading volume rose to 80,291 shares in February, with an estimated value of K414.9 million, according to the monthly report of the YSX.

At present, shares of seven 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 Holding Public Co., Ltd. (AMATA) were traded in the equity market. The share prices per unit slightly fell to K7,900 for FMI, K2,900 for MTSH, K7,800 for MCB, K19,000 for FPB, K2,600 for TMH, K2,800 for EFR and K4,900 for AMATA respectively in February.

Regardless of the collapse of the stock markets worldwide, the local equities market has been able to continue operating without stopping trading. Additionally, YSX launched a 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. Next, the Securities and Exchange Commission of Myanmar (SECM) has allowed foreigners to invest in the local equity market since 20 March 2020.

Only K4.63 billion valued 887,969 shares by seven listed companies were traded on the exchange in 2021, showing a significant drop of 63 per cent as against 2020, according to the annual report released by the exchange. In 2020, K12.6 billion worth of 1.87 million shares by six listed companies were traded on YSX, whereas over 2.4 million shares from five listed companies, valued at K13.39 billion, were traded on the exchange in 2019. 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 webinars and training courses.

Source: The Global New Light of Myanmar

Notication 5/2022

2nd Waxing of Taboung 1383 ME
3 March 2022

1. The Central Bank of Myanmar has hereby issued this notification exercising the power conferred under Sections 17 and 22 of the Foreign Exchange Management Law.
2. The Baht/Kyat direct payment is allowed on the Thai-Myanmar border to boost bilateral trade between Thailand and Myanmar, to facilitate smooth flow of goods, to make easy access to cross-border payment between the two countries and to promote local currency in line with the objectives of ASEAN Financial Integration.
3. The exporters and importers are allowed to open baht accounts at the designated banks for cross-border trade.
4. Therefore, the designated banks are required to adhere to the guidelines for the direct use of Baht/Kyat on the Thai-Myanmar border.
5. This notice shall take effect from the date of the issuance.

Than Nyein
Governor

Source: The Global New Light of Myanmar

Malaysia’s Petronas and Japan’s Mitsubishi Corp. have announced they will sell shares in Myanmar’s Yedagun gas project. These companies are the last of the major energy companies to leave Myanmar since February 1 last year. A Mitsubishi spokesman told Reuters on February 18 that it would be difficult to stay afloat from a technical and economic point of view. The company indirectly owns 1.93% of its investment in the Yedagun gas project off the south coast of Myanmar.

They have already decided to leave the project, and talks were under way with partner companies from Japan. Petrtronas’s PC Myanmar (Hong Kong) Limited, a subsidiary of the Yedagun project, signed an agreement in July last year to sell Petronas’s investment in Myanmar. Petronas told Reuters earlier this month. A Petronas spokesman said the transfer was nearing completion but declined to name the buyer. PC Myanmar (Hong Kong) Limited has a 40.9% stake in the Yedagun project, with Myanmar Oil and Gas Corporation (MOGE) owning 20.5%.

In addition, a Japanese joint venture led by the Japanese government and JX Nippon Oil and Gas Exploration, a subsidiary of Eneos Holding, has a 19.3 percent stake, with the rest owned by PTTEP International of Thailand. “Eneos Corporation is in talks with partners on various possibilities,” a company spokesman told Reuters whether there were any plans to continue the gas project in Myanmar. Total Energies and Chevron, two energy companies involved in a Yadana gas project in Myanmar, are also in Myanmar. It announced last month that it would close its operations due to the deteriorating human rights situation.

Source: Daily Eleven

A total of 61,435 shares by seven listed companies were traded on the Yangon Stock Exchange (YSX) in January 2022, with an estimated value of K282 million, according to the monthly report of the YSX. At present, shares of seven 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 Holding Public Co., Ltd. (AMATA) were traded in the equity market. The share prices per unit slightly fell to K8,000 for FMI, K2,950 for MTSH, K8,000 for MCB, K19,500 for FPB, K2,650 for TMH, K2,850 for EFR and K5,400 for AMATA, respectively, in January.

People like to keep emergency savings and purchase the safe-haven asset gold and hard currency, rather than make investments amid the COVID-19 crisis and political changes. Regardless of the collapse of the stock markets worldwide, the local equities market has been able to continue operating without stopping trading. Additionally, YSX launched a 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. With a view to achieving a better understanding of legal aspects and registration criteria of Myanmar public companies, a free webinar for PLB is scheduled to be held in February 2022, according to the YSX Quarterly E-Newsletter.

Next, the Securities and Exchange Commission of Myanmar (SECM) has allowed foreigners to invest in the local equity market since 20 March 2020. Only K4.63 billion valued 887,969 shares by seven listed companies were traded on the exchange in 2021, showing a significant drop of 63 per cent as against 2020, according to the annual report released by the exchange. In 2020, K12.6 billion worth of 1.87 million shares by six listed companies were traded on YSX, whereas over 2.4 million shares from five listed companies, valued at K13.39 billion, were traded on the exchange in 2019. 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 webinars and training courses.

Source: The Global New Light of Myanmar

Despite the Central Bank of Myanmar keeping selling the US dollar to control the sudden fluctuation of foreign exchange rates, Myanmar’s foreign exchange hits around K2,000 per dollar in the outside foreign exchange market. The CBM sold a total of $65 million at an auction rate including $15 million each on 7, 12 and 20 January and $10 million on 13 and 14 January.

The CBM is selling the foreign currency at its auction-rate through banks to the prioritized sectors especially fuel oil, edible oil and pharmaceutical sectors where the dollars are vastly in need. Although the exchange rate on the US dollar hit around K1,330 per dollar the last January, the dollar value reached the highest of over K3,000 last September-end.

Last year, the CBM sold $443.8 million to the sectors especially the oil, fuel and pharmaceutical sectors that need US dollars through the banks. Besides, the Central Bank of Myanmar (CBM) issued the instruction on 9 November that the foreign exchange transitions must be carried out within ± 0.5 per cent of the reference rate established by the CBM. The CBM’s reference rate was K1,778 per dollar on 28 January, but the outside 6 foreign exchange market rate hit around K1,970 per dollar.

Source: The Global New Light of Myanmar

As the gold price is too fast to spike yet slow to fall in the domestic market, there are more sellers than buyers, said U Myo Myint, Chair of the Yangon Region Gold Entrepreneurs Association (YGEA). The daily transaction of 50 visses (a viss equals 1.6 kilogrammes) of gold are seen in the market. However, sellers outnumber buyers in recent days.

“Gold shops are buying approximately 50 visses of the gold transaction rather than selling these days, unlike the past trading,” U Myo Myint was quoted as saying. Additionally, Kyat devaluation against the US dollar is another reason for the price hike in the domestic gold market, he added. The global gold price stands at US$1,836 per ounce. The US dollar exchange rate is approximately K1,990 in the local forex market at present.

Meanwhile, the pure gold fetches up to K1,880,000 per tical (0.578 ounce, or 0.016 kilogramme). The gold price rally is likely to continue in the coming months. Only if the global gold price slides and Kyat appreciates on the US dollar can the domestic gold price fall, U Myo Myint shared his opinion. The domestic gold price is highly correlated with the international market. Last 28 September 2021, a dollar value hit an all-time high of over K3,000 in the black market and consequently, the pure gold reached a record high of K2.22 million per tical in history.

Source: The Global New Light of Myanmar

The Central Bank of Myanmar (CBM) sold US$15 million at its FX auction on 20 January 2022, bringing a total number of sales of $65 million in January five times, according to a statement of the CBM. The Central Bank of Myanmar sold $15 million each on 7, 12 and 20 January and $10 million on 13 and 14 January.

According to monthly purchases and sales of US dollars from January to December in 2021, the CBM sold $6.8 million in February 2021, a foreign exchange auction, but did not sell in March., The CBM sold also $12 million in April, $24 million in May, $12 million in June, $39 million in July, $28 million in August, $63 million in September, $110 million in October, $31 million in November and $118 million in December.

The CBM is conducting an auction for foreign exchange to reduce the fluctuation of foreign exchange rates in a short-term period and fulfilling the needs of foreign exchange reserves. Rules and directives have been set out for the CBM’s auctions. Following these rules and directives, the CBM is trading the foreign currency with three State-owned banks, 19 local private banks and 13 foreign banks, which are holding authorized dealer-AD licences. This CBM’s move is aimed at governing the market volatility and strengthening the local currency value.

Source: The Global New Light of Myanmar

Foreign investors have purchased over 4.489 million shares of four listed companies on the Yangon Stock Exchange (YSX) so far, according to statistics released by the exchange. 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, Ever Flow River Group Public Co., Ltd (EFR) and Amata Holding Public Co., Ltd (AMATA) — are available for local investors for trading. Foreigners invest in FMI, MTSH, TMH and EFR on the exchange. FPB is for block trade only. The foreign investors are about to reach the upper limit of 14 per cent for shareholding with FMI and consequently, the status of buy order acceptance is suspended for now. The foreign shareholding ratio of the companies on the exchange, except FMI, is less than one per cent.

As of 19 January 2022, foreigners hold over 4.45 million shares of FMI, over 27,897 shares of MTSH, 5,445 shares of TMH and 3,002 shares of EFR, YSX’s statistics indicated. 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. Foreign participation would entail better capital inflows, long term and sustainable investment, encourage good corporate governance, and support market orientation, YSX stated. Regarding share trading, 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).YSX launched a pre-listing board (PLB) on 28 September 2020 in order to provide unlisted public companies with fund-raising opportunities and build a bridge toward listing on the exchange, 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 emerg.

Source: The Global New Light of Myanmar

The international remittance for gold transaction valued at below US$50,000 is allowed to use Telegraph Transfer (TT) system, said U Myo Myint, Chair of the Yangon Region Gold Entrepreneurs Association. This move will revive gold export market, he continued. “Traders are no longer face hurdles in gold export. They are prepping for export. The goldsmith businesses also resume their operations. Transportation agents also embark on export procedures,” he was quoted as saying. Nevertheless, the transaction worth above $50,000 can be done only with Letter of Credit (LC).

Those who want to export gold can inquire the procedures at the One-Stop Service Centre. They can also request the YGEA for certain matters. As per the notification released by the Ministry of Commerce on 12 August 2020, transaction for gold export and import can be done only through LC system. Myanmar is placed on the grey list by the Financial Action Task Force (FATF), the inter-governmental body that sets anti-money laundering standards. Therefore, the country needs to monitor on the gold and jewellery exports and imports in order to ensure there is no illegal income.

As per the notification released by the according to the Trade Department, payment method was changed to LC.
The payment using LC can take about two months, cost banking service changes by two sides, and increase the charges for security matter in transport. Consequently, gold trading in the international market has also stalled due to volatile prices, YGEA stated. Starting from 20 December, TT system was given the green light for transaction valued at below $50,000 in gold exports. The transaction worth higher than that are permitted only with LC, Trade Department notified. Gold and other jewelleries are primarily purchased by Japan and the Republic of Korea, and other tourists also buy them, the YGEA stated. 

Source: The Global New Light of Myanmar

The Central Bank of Myanmar (CBM) sold US$50 million at its foreign auction rate in two weeks, according to the statement of CBM. According to the sales of US dollars in January, the bank sold $15 million each on 7 and 12 January and, 10 million each on 13 and 14 January. The CBM is selling the foreign currency at its auction-rate through banks to the prioritized sectors especially fuel oil, edible oil and pharmaceutical sectors where the dollars are vastly in need.

The CBM is conduction an auction for foreign exchange to reduce the sudden fluctuation of foreign exchange rates Last a few days, the US dollar exchange rate rose to over K2,000 per dollar in the domestic foreign exchange market. The dollar exchange rate against the Myanmar kyat currently stood at below K2,000 per dollar.

Although the exchange rate on the US dollar hit around K1,330 per dollar the last January, the dollar value reached the highest of over K3,000 last September-end. Last year, the CBM sold $429 million to the sectors especially the oil, fuel and pharmaceutical sectors that need US dollars through the banks. Besides, the Central Bank of Myanmar (CBM) issued the instruction on 9 November that the foreign exchange transitions must be carried out within ± 0.5 per cent of the reference rate established by the CBM. Currently, the CBM selling the US dollar at the auction rate of K1,778 on 14 January.

Source: The Global New Light of Myanmar