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Stock market declines in July

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

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