Posts in category: ECONOMY

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

The rice and paddy price extends its drop at March-end due to the brokers’ lack of money in circulation and lower pricing. The rice is regularly traded in Yangon as urban people keep supply to ensure food security in need. The rice price was pegged at around K21,000-22,000 per bag in March-end, with a small decrease of K2,500 as against the previous months. Meanwhile, the paddy prices move in the range of K506,000 to 626,000 per 100 baskets, depending on the rice crops’ quality. The paddy prices indicated a decrease of K6,000-46,000 per 100-baskets upon different qualities and varieties, as per the domestic rice market. Only a small number of rice export companies are buying the rice at present owing to the disruption in banking, said U Than Oo, secretary of Bayintnaung Rice Wholesale Centre.

Since early February, the local private banks have been closed down, causing transaction Rice prices remain low due to lack of money in circulation problems. Consequently, the export companies are buying less in the domestic market. The rice exports are currently conducted for the previous contract only. Additionally, the US dollar is appreciating against the Kyat. However, the farmers are paid lower than the actual market price and suffering losses, he added. Next, the informal money transfer system Hundi is available in border trade only. In contrast, it cannot be done in maritime trade. In Sino-Myanmar border, exchanging Yuan is quite easy through hundi agent. Similarly, the traders use hundi for exchanging Baht on the Myawady border with Thailand.

Nevertheless, overseas trade with European and African countries is carried out with a letter of credit through banks. The disruption in banking poses difficulties to the maritime trade. Bayintnaung rice wholesale centre, a primary market for rice exports via maritime trade, has been closed down since 11 February. Additionally, Myanmar traders are shipping rice to China under new permits for 2021. Myanmar shipped more than 720,000 tonnes of rice and broken rice to foreign countries between 1 October and 15 January of the current financial year 2020-2021, earning over US$275 million, Myanmar Rice Federation stated. Weather changes affected irrigation water resource availability in agriculture. As a result of this, Myanmar set the rice export target at only 2 million tonnes in the current FY as summer paddy growing acreage drops, said the chairman of the Myanmar Rice Federation (MRF). Myanmar generated over $800 million from rice exports in the previous FY2019-2020 ended 30 September, with an estimated volume of over 2.5 million tonnes.

Source: The Global New Light of Myanmar

The meeting (3/2021) of the Working Committee to address the impact of COVID-19 on the country’s economy was held in the afternoon of 30th March,2020. The meeting was chaired by U Aung Naing Oo, Union Minister for Investment and Foreign Economic Relations.

Members of the working committee Deputy Ministers, from Ministry of Planning, Finance, Industry, Ministry of Labour, Immigration and Population and Ministry of Commence, and representatives of the Ministries concerned joined the meeting.

In the meeting, the Union Minister highlighted that a six- month extension of the grace period of COVID loan under the guidance of the State Administration Council, the formation of monitoring teams in states and regions to scrutinize the use of COVID-19 loan by the businesses and the revision of functions of the working committee. The meeting also discussed matters relating to measures to address the economic impacts of the COVID-19 and further measures to proceed expeditiously.

Source: The Global New Light of Myanmar

ACCORDING to the domestic market, the price of precious pure gold metal increased by K80,000 per tical (0.578 ounces, or 0.016 kilograms) in the past three weeks. The price stood at only K1,302,000 per tical on 4 March, and then, it tremendously soared to K1,385,000 per tical on 23 March, the gold traders said. However, the rate has not reached the maximum of above K1,400,000 per tical registered in February. The international gold price was pegged at around US$1,700-1,736 per ounce in March, despite a sharp rise in the domestic market.

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. 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 last year, 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 exchange rate of the US dollar has been on the decline against Myanmar Kyat in the domestic currency market, a dropping by over K20 in over two weeks, according to the Central Bank of Myanmar. The rate went down from K1,447 per dollar on 22 February to K1,423 per dollar on 10 March in the domestic exchange market.

Similarly, the domestic gold price is also dropping in the market. The price per tical (0.578 ounces, or 0.016 kilograms) of gold was around K1,410.000 on 3 February but had dropped to K1,325,000 by 10 March. In the domestic market in 2021, the highest and lowest exchange rate is currently fixed around K1,327-1,345 in January and K1,330-1,447 in February.

This year, the exchange rate moved in the range of K1,465-1,493 in January, K1,436-1,465 in February, K1,320-1,445 in March, K1,395-1,440 in April, K1,406-1,426 in May, K1,385-1,412 in June, K1,367-1,410 in July, K1,335-1,390 in August, K1,310-1,355 in September, K1,282-1,315 in October, K1,303-1,330 in November and K1,324-1,403 in December. In the last six months in 2019, the rates were fixed at K1,508-1,517 in July, K1,510-1,526 in August, K1,527-1,565 in September, K1,528-1,537 in October, K1,510-1,524 in November and K1,485-1,513 in December. On 20 September 2018, the dollar exchange rate hit a record high of K1,650 in the local exchange market. 

Source: The Global New Light of Myanmar

The value of shares traded on the Yangon Stock Exchange (YSX) in February 2021 showed a drastic drop of K200 million against January’s trading value, the YSX’s monthly report indicated. In February 2021, K442 million worth of 77,388 shares were traded on the exchange. The figures plummeted from K640 million value of 121,893 shares registered in January. Additionally, the value of shares traded on the Yangon Stock Exchange (YSX) in February 2021 dropped by more than a third compared with February 2020 (registered K1.4 billion valued 188,919 shares), the YSX’s monthly report indicated.

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. The shares prices last month showed a downtick compared to the prices registered in January 2021. The price per share of FMI decreased from K9,700 in January 2021 to K9,300 in February 2021. Similarly, the share price of MTSH slid to K3,500 from K3,900 last year. The stock prices were remained unchanged at K8,200 for MCB and K22,000 for FPB, while TMH slightly rose to K2,800 from K2,700. The share price of EFR last month was closed at K3,350 from K3,600 in January 2021.

Amid the COVID-19 crisis, Myanmar’s securities market has been able to continue operating without stopping trading. In 2020, the value of stocks traded on the exchange peaked at K1.48 billion in February. In contrast, 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. According to the annual report released by the exchange, 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 at K13.39 billion, were traded on the exchange in 2019.

In 2016, shares of only three companies were traded on the YSX — FMI, MTSH, and MCB. One more public company, FPB, was listed on the YSX in 2017. In 2018, TMH debuted on the exchange. EFR entered the exchange in 2020. Moreover, Amata Holding Public Co., Ltd. (AMATA) released a statement that the listing date will be postponed for a certain period of time, and the rescheduled listing date will be announced in due time, YSX notified on 26 February 2021. 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 in the COVID-19 crisis and current political conditions, he added.
Next, the Securities and Exchange Commission of Myanmar (SECM) has allowed foreigners to invest in the local equity market from 20 March 2020.
The 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, stated the bourse. The YSX, a Myanmar bourse, 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. According to the annual report released by the exchange, a total of K12.6 billion worth of 1.87 million shares by six listed companies were traded on the Yangon Stock Exchange (YSX) in 2020, a significant drop compared to 2019. Over 2.4 million shares from five listed companies, valued at K13.39 billion, were traded on the exchange in 2019. 

Source: The Global New Light of Myanmar

ACCORDING to the domestic gold market, the gold market prices in Myanmar dropped by over K100,000 in half a month. Although pure gold reached the highest price of over K1,4000,000 per tical on 17 February, the price dropped to K1,302,000 per tical after 15 days on 4 March. Recent days saw the gold price unstable in the domestic market. That is the reason why the Yangon gold market halted on 5 February. But, the market reopened on 10 February. Consequently, Yangon Region Gold Entrepreneurs Association called an emergency meeting on 4 February before the gold market started. Then, the association made four decisions.

They are to use the cash down payment system and encourage people who are trading with fear and trading with restraint. Similarly, the international gold price is also on the decline. The gold price was only around US$1,788 per ounce on 17 February but had dropped to $1,713 on 4 March 2021, a decline of $75 in 15 days. In January 2021, the domestic gold fetched the highest price of K1,336,000 per tical on 6 January. It reached the lowest price of K1,316,000 per tical on 28 January. The lowest level of K1,340,000 came from 2 February, and the highest level of K1,410,000 (3 February), the gold traders said.

The local gold price reached the lowest 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 K1,312,000 (16 November) and the lowest of K1,278,000 (28 November). In December, the pure yellow metal priced moved in the range of Ks 1,275,000 (1 December) and K1,333,000 (28 December). With the 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 K1,200,000 (7 August-4 September), and then reaching a fresh peak of K1,300,000 on 5 September, according to the gold traders.

Source: The Global New Light of Myanmar

The listing date, before scheduled, of Amata Holding Public Co., Ltd. (AMATA on Yangon Stock Exchange (YSX) would be postponed for a certain period. And the rescheduled listing date announced in due time, according to the YSX notification on 26 February 2021. After scrutinizing submitted application documents and a deliberate listing examination, YSX approved the Amata Holding Public Co., Ltd. (AMATA) to be listed on YSX under Section 41 (c) of the Securities Exchange Law and Section 7 and 8 of the Securities Listing Business Regulations, on 28 December 2020. Earlier, it was scheduled to debut on the exchange on 12 March.

AMATA is the very first hotels and tourism sector to be listed in the equity market. The base price of AMATA will be announced on the YSX website one working day before the listing date. On 18 July 2018, the company issued a prospectus in which 596 investors held 497,598 shares at an offering price of K5,000 per each unit. AMATA would be the seventh public company to list on the exchange. As per the company’s profile, AMATA is a public holding company and operates a resort in Ngapali Beach, Inle Lake and Bagan, and a hot-air ballooning business with 15 balloons in six cities. AMATA owns 99.99% share from United International Group Co., Ltd and 51% shares from Myanmar Ballooning Co., Ltd.

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. On 26 February 2021, the share prices of FMI were closed at K9,300 per unit, MTSH at K3,500, MCB at K8,200, FPB at K22,000, TMH at K2,800 and EFR at K3,350, respectively. Usually, over K60 million worth of shares were traded on the exchange every day. The COVID-19 impacts cooled down the market. 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 amid the COVID-19 crisis and current political conditions, he added. 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 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, 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. Amid the COVID-19 crisis, Myanmar’s securities market has been able to continue operating without stopping trading. According to the annual report released by the exchange, a total of K12.6 billion worth of 1.87 million shares by six listed companies were traded on the Yangon Stock Exchange (YSX) in 2020, a significant drop compared to 2019. Over 2.4 million shares from five listed companies, valued at K13.39 billion, were traded on the exchange in 2019. 

Source: The Global New Light of Myanmar

According to the domestic gold market, the gold market price in Myanmar dropped over K30,000 these days. Although the pure gold fetched the highest price of over K1,4000,000 per tical on 17 February, it has dropped to K1,366,000 per tical on 26 February. Recent days saw the gold price unstable in the domestic market. That is the reason why the Yangon gold market halted on 5 February. But, the market was reopened on 10 February. Consequently, Yangon Region Gold Entrepreneurs Association called an emergency meeting on 4 February before the gold market started.

Then, the association made four decisions. They are to use the cash down payment system and encourage people trading with fear and trading with restraint. Similarly, the international gold price is also on the decline. The gold price was fixed at around US$1,788 per ounce on 17 February and $1,770 on 26 February 2021. In January 2021, the domestic gold fetched the highest price of K1,336,000 per tical on 6 January. It reached the lowest price of K1,316,000 per tical on 28 January. The local gold price 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 K1,312,000 (16 November) and the lowest of K1,278,000 (28 November). In December, the pure yellow metal priced moved in the range of K1,275,000 (1 December) and K1,333,000 (28 December). With the 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 K1,200,000 (7 August-4 September), and then reaching a fresh peak of K1,300,000 on 5 September, according to the gold traders.

Source: The Global New Light of Myanmar

The project will provide loans of up to 5 million kyats per annum to small grocery stores affected by COVID-19 at an interest rate of 2% per annum according to the Ministry of Planning, Finance and Industry published by the Financial Supervision Department. Nay Pyi Taw Council, which was affected by COVID-19. Low interest loans (one year loan term) to small grocery stores in the region or state with a maximum interest rate of 2% per annum up to 5 million kyats per project. The Ministry of Finance and Industry will provide loans through microfinance institutions.

Therefore, grocery stores that want to get a loan should apply to Hana Microfinance Limited in the states and regions, Microfinance Nanster International Co., Ltd, Alliance for Microfinance in Myanmar, Stapana Limited, Alliedon Microfinance Company Limited; Pact (Global micro Finance Fund), Myat Kyun Thar Microfinance Company Limited; LOLC Myanmar Microfinance (S), Dawei Development Public Company Limited; Aung Pyae Phyo Kyaw Company Limited, Blue Lion Microfinance (Myanmar) Co., Ltd,  Sanda Phone Pyae Microfinance, Inocular Petrol Microfinance Co., Ltd, Khant Thu Walar Microfinance Co., Ltd.

People can get a loan by contacting microfinance institutions such as ASA Microfinance (Myanmar) Ltd. The Working Committee on the Economic Impact of COVID-19 has set up the COVID-19 Fund to provide much-needed financial assistance to businesses hotels and tourism; small Loans to small and medium enterprises have been issued affected by COVID-19 since April 9, 2020. The effects of COVID-19 were covered in accordance with CERP. 303,017.236 million kyats for the treatment of COVID-19 disease; 1508370.011 million for support to households and national disaster fund; 399,000 million kyats for loans to businesses; 728,515.254 million kyats for CERP activities; 200,500 million kyats for the opening of skills training, for a total of 2951664.128 million kyats.

Source: Daily Eleven