Myanmar Stock Exchange listed companies. The exchange has been running for four years, but has virtually no trading volume. One reason is that foreign investors are not allowed to buy stocks in Myanmar, which means that the market has never flourished. It’s important to note that the exchange has three listed companies. The MEHL and MEC are still operating, however. Therefore, foreign investors should avoid this market until it gets more established.
Foreigners can trade in shares of Myanmar Stock Exchange listed companies
Starting in November, the Myanmar Stock Exchange will allow foreign investors to buy and sell shares of listed companies. Currently, this is only possible if the companies have been listed for at least one year. The company must notify YSX of their intended proportion and the Securities
and Exchange Commission of Myanmar (SEC), the country’s market regulator. The FS will be enforced on the end of November. Once the SEC gives its approval, the FS will be implemented.
The Yangon Stock Exchange was established four years ago and currently has five companies listed. However, there has been virtually no trading activity due to a lack of foreign investors. Because of the lack of foreign stock buyers, Myanmar’s stock market has never flourished. Despite the government’s efforts, the market is still largely undeveloped. However, this is beginning to change. Listed companies in Myanmar have more potential than ever to attract investors.
YSX has three listed companies
On 3 June 2021, the Amata Holding Public Co., Ltd. will debut on the Yangon Stock Exchange. The company will be listed at K4,500 per unit and will have same-day trading. The company has set an upper limit and lower limit for its shares. Market orders can match prices between these two limits. The base price will be announced one working day before the listing. AMATA has a portfolio of resorts and a hot air ballooning company.
The YSX also holds a market board for trading the listed stocks of companies. These companies were approved to list after passing the listing examination. The Main Board is governed by the Securities Listing Business Regulations and Enforcement Regulations for Securities Listing Business. It is also referred to as the LISTING BOARD of YSX. Listed companies are only allowed to list on the YSX.
YSX is run by the Myanmar Economic Bank
The opening of YSX is a significant step for the country and is a critical step in the process of attracting foreign investment. Currently Myanmar has 53 million untapped consumers. With a growing middle class, the country has huge potential to attract multinational companies. Its population is projected to increase to 56 million by 2020. Japan has lent its support to the opening of the YSX, contributing to the initial funding of the exchange. It holds a combined 49 percent stake in the company.
Macroeconomic stability is crucial in fostering rapid growth. The country’s geographic location – it borders China, India, Southeast Asia, and the Bay of Bengal – is a strong influence on its development. Besides opening its economy to international trade, Myanmar must also ensure that it maintains its financial system through prudent management. And while opening the economy to foreign investment, it should also focus on eliminating import licensing. Import bans on Myanmar’s goods should also be replaced with zero tariffs.
MEHL and MEC are still running
Despite the recent political turmoil, the military remains active in business. In fact, after the socialist coup in 1962, the military battalions were encouraged to acquire stakes in local businesses and finance their operations with private funds. Although the practice has been phased out, two military-run conglomerates still exist. These companies are the Myanmar Economic Holdings Limited and the Myanmar Economic Corporation, which have interests in mining, tourism, and military pension funds.
The UN investigation, which was sparked by the crackdown on Rohingya communities, uncovered how these businesses enriched the Tatmadaw and gave it the freedom to abuse human rights. The investigation found that foreign governments with commercial ties to these businesses also assisted in allowing the Tatmadaw to operate without oversight. The report found that MEHL and MEC were running their businesses in a manner that facilitated the Tatmadaw’s abuse of human rights.
The market for Myanmar Stock Exchange listed companies could face high volatility because the country isn’t yet home to institutional investors. Foreign investors are prohibited from participating in the initial phase of the market, so most investors simply use the basic information provided by the companies to make their decisions. This could lead to a large amount of volatility in the market, given that foreign investors tend to invest in better known international companies. Local investors, on the other hand, tend to focus on stocks with high dividends and high growth potential.
Inflation data for May in Myanmar shows an annualized 8.6% increase, which prompted investors to sell stocks hoping that it was a sign of a consumer price peak. Monday, the S&P 500 dropped into bear market territory, down over 20% from its highs in January 2021. This was the latest indication that a new round of volatility is looming. The Global Fear Index of COVID-19 is one index that attempts to predict the market’s volatility. It is measured by the daily reported cases and death cases index. It also measures the probability of a corona-positive case from today to the next 14 days.
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