Myanmar will allow foreign individuals and locally-registered entities to invest in the Yangon Stock Exchange (YSX) as a move designed to throw a lifeline to the country’s only bourse. They will be permitted to invest in the YSX up to 35pc according to the regulator, the Securities and Exchange Commission of Myanmar on 12th July.
No date for starting trade was given but Ko Aung Thaw Zin, research analyst at business information firm Frontier Myanmar Research (FMR) expects the trade to start by the end of the year. “It’s unclear [from the notice] whether both resident and non-resident foreigners will be permitted to trade. I understand the SECM has already prepared the follow-on regulations, which is likely to allow [only] resident foreigners,” he added.
The YSX was incorporated with a paid-up capital of US$22.6 million in December 2014 and welcomed its first initial public offering in January 2018. With five listed companies, the bourse is small and limited in liquidity, with daily volume of US$35,000 as of July 12, and a market capitalization of around $400 million.
Graphic: The Myanmar Times
Source: The Myanmar Times, Mizzima