Stock market delayed due to election

The launch of the Yangon Stock Exchange has been pushed back until after the November 8 election, according to deputy finance minister Dr Maung Maung Thein.

The stock exchange had initially been scheduled to be launched in late October, but the new date is roughly scheduled to be the third or fourth week of November or the first week of December.

“It’s been pushed back because of the election,” he said.

“Because people will be focusing on the election, so [the launch] has been moved.”

Dr Maung Maung Thein said there are still some things to do ahead of the launch of the exchange.

A total of 57 companies had previously submitted paperwork to be service providers such as underwriters, brokers, dealers and advisers with the exchange, though winners have not yet been announced.

Dr Maung Maung Thein said he estimates the service providers could be selected this month.

Three firms have publicly declared an intention to list on the stock exchange so far, though prominent entrepreneur Serge Pun said previously that First Myanmar Investment, a company he chairs, may be the only one ready to list when the market opens.

Some have also questioned whether the planned timetable to launch a stock exchange this year is achievable.

The exchange is being put together with two prominent Japanese partners.

The two Japanese firms, Daiwa Institute of Research and Japan Exchange Group, and state-owned Myanma Economic Bank, signed an agreement in December 2014 to open the stock exchange. The three had initially signed a memorandum of understanding in May 2012 to form the exchange.

Daiwa officials had not returned a request for comment as of deadline yesterday.

The Yangon Stock Exchange-Joint Venture Limited will have K32 billion in capital, with five directors, three of which are from the Myanmar side.

Dr Maung Maung Thein said there are other preparations underway to improve awareness of the exchange, including for the media, businesses and civil society, and also university students.

Myanmar has an over-the-counter type market, the Myanmar Securities Exchange Centre, though it lacks modern facilities and trading in the two companies listed on the exchange is rare.

There are also about 200 public companies in the country, some of which actively trade shares on an over-the-counter basis rather than at a market.

Source: Myanmar Times

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