Arab Today, arab today myanmar investors swot up for new bourse
Last Updated : GMT 02:35:53
Arab Today, arab today
Arab Today, arab today

Learning to trade

Myanmar investors swot up for new bourse

Arab Today, arab today

Arab Today, arab today Myanmar investors swot up for new bourse

Representatives of Myanmar Federation of Chamber of Commerce and Industries
Yangon - Arab Today

Inside the graceful halls of Myanmar's first modern bourse a huddle of business leaders crowds into a crash course on sharetrading, as the former junta-run country takes another leap towards economic revitalisation.

Yangon Stock Exchange (YSX) is due to debut its first listed company on Friday, just days before a new civilian government overseen by Aung San Suu Kyi comes to power in a nation fast opening up after decades of military rule.

The start of trading, long after the bourse was first envisaged, is a vivid illustration of Myanmar's economic handicap -- a country that still has no credit rating and where business has long been hamstrung by ingrained corruption.

But it also encapsulates the excitement and optimism that has gripped both local and foreign investors alike.

Dozens of people every week have attended the YSX classes for those unfamiliar with sharetrading, which include lessons on investment risks and rewards as well as multimedia guides to stock purchasing.
"It is great for Myanmar people to learn about the stock market. It will bring new hope for our business sector," business consultant Nwe Ni Soe told AFP at a recent training day.

Under the military, Myanmar was plunged into poverty and pummelled by banking crises, international sanctions and arbitrary economic policies that destroyed the once vibrant economy and saw ordinary people hoard savings in assets like gold.

The tide began turning under the outgoing reformist quasi-civilian government which took power in 2011.

A handful of foreign banks have slowly crept into the country, while a raft of new business and finance laws have begun to untangle a messy legal landscape.

The World Bank says the country could grow by as much as eight percent a year for the next five years, but says firms are struggling with access to finance.

Myanmar's incoming government is faced with a raft of challenges as it looks to encourage investment and create jobs.

In the way is a weak kyat currency, decrepit infrastructure, patchy electricity and an urgent need to improve skills in a nation whose education system withered with neglect under the junta.

- Solo trader -
The YSX will initially launch with just a single firm, First Myanmar Investment run by Myanmar tycoon Serge Pun, and be open only to domestic investors.

Tun Tun, FMI's executive director and chief finance officer, said he hoped the bourse would provide a "healthy capital market for the benefits of both investors and businesses", urging authorities to accelerate plans to allow foreign investment.

With its sister firm Yoma Strategic Holdings listed in Singapore and around 6,800 shareholders through an in-house system, FMI already has experience of stocktrading, a rarity in Myanmar.

Several other firms that have been approved to list, including the Japan-backed Thilawa Special Economic Zone, have yet to finalise their preparations.

Rajiv Biswas, Asia-Pacific chief economist, IHS Global Insight, said it would take time for YSX to overcome an array of hurdles, like building up enough stocks to trade, creating liquidity and putting in place strong governance standards.

"Relatively new stock exchanges need to build confidence among investors about the transparency of listed companies in their stock exchange filings, as well as setting tough regulatory standards to prevent acts such as insider trading or market manipulation," he said.

But he added that the market could have a "crucial role to play" in the future for both government and companies to raise equity and debt for "funding their economic expansion plans".

- Investing in the future -

The bourse has been decades in the making.
In 1996 Japanese firm Daiwa Securities and a state bank set up the Myanmar Securities Exchange Centre, but this allowed over-the-counter sales of shares in just two firms.

"We didn't make much progress under the last junta regime," said Thet Htun Oo, a senior bourse official.

A joint venture agreement was eventually signed in 2014, with Myanma Economic Bank owning a controlling 51 percent stake in YSX, with the remainder divided between Japanese partners.

It is now housed in a newly-renovated colonial-era building, replete with a gleaming trading bell, souvenir shop and cafe.

Officials are aiming to attract 30 to 50 firms in five years. Early investors are expected to be businesses and individuals, and Thet Htun Oo said they are "very eager".

At its ceremonial opening in December, officials were stunned to see a crowd of people outside wanting to buy shares, some from as far away as Myanmar's second largest city Mandalay.

That enthusiasm is on show at the YSX's weekly classes.

"YSX is a chance for the future," said business advisor Than Win at a recent training session.
Source: AFP

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today myanmar investors swot up for new bourse Arab Today, arab today myanmar investors swot up for new bourse

 



Arab Today, arab today
Arab Today, arab today Nohan Seyam designs beautiful accessories

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today 11 family members dead in rebel push

GMT 07:57 2017 Tuesday ,21 February

11 family members dead in rebel push
Arab Today, arab today To probe sexual harassment claims

GMT 10:08 2017 Tuesday ,21 February

To probe sexual harassment claims

GMT 09:22 2017 Monday ,20 February

China's huge debt poses big headache for central bank

GMT 18:23 2017 Sunday ,19 February

Darwesh vows to provide job opportunities for youth

GMT 12:10 2017 Sunday ,19 February

Welcomes the F&B solution of the future

GMT 10:06 2017 Friday ,17 February

South Korea's Hanjin Shipping declared bankrupt

GMT 09:26 2017 Friday ,17 February

Samsung's history tainted by run-ins with the law

GMT 09:20 2017 Friday ,17 February

Samsung heir arrested in corruption probe

GMT 10:26 2017 Thursday ,16 February

Dollar, equities stutter in Asia after Trump rally
View News in Arabic - Business: أخبار الأعمال
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today 57 monkeys carrying 'invasive' genes

GMT 16:00 2017 Tuesday ,21 February

57 monkeys carrying 'invasive' genes
Arab Today, arab today 63-Year-Old Woman Delivers Baby

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby
Arab Today, arab today Small ponds have outsized impact

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Ahmed Fahmy stresses he did not ignore singing

GMT 06:34 2017 Sunday ,19 February

Ahmed Fahmy stresses he did not ignore singing
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars

GMT 21:11 2017 Saturday ,18 February

Egypt to hold first session of Arab film festival

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed

GMT 12:22 2017 Monday ,20 February

Kanye West puts hijab-wearing model

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 14:51 2017 Monday ,20 February

Ways to acquire presentation skills

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 16:08 2017 Wednesday ,15 February

Shawsh reveals her collection "Jewelry of dreams"
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday