Myanmar will allow direct foreign ownership of shares at the Yangon Stock Exchange (YSX), a move designed to throw a lifeline to the country’s only bourse. In a notice on Friday, the regulator, the Securities and Exchange Commission of Myanmar, said foreign individuals and locally-registered entities would be allowed to invest in listed shares of up to 35pc.

No timeline was given but Ko Aung Thaw Zin, research analyst at business information firm Frontier Myanmar Research (FMR), expects such trading to start by year end. “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.

There are five companies listed on YSX: First Myanmar Investment Public  Co Ltd, Myanmar Thilawa SEZ Holdings Public Co Ltd, Myanmar Citizens Bank Ltd, First Private Bank Ltd, and TMH Telecom Public Co Ltd. 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 capitalisation of around $400 million.

Source: Myanmar Times 

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