Yangon December 9
Myanmar officially opened its stock exchange in Yangon on Wednesday with the help of Daiwa Securities, Japan's second largest stock brokerage.
The Yangon Stock Exchange is expected to make it easier for local firms to raise funds, and in turn stimulate activity in the Southeast Asian country's fledgling economy.
The event comes less than a month after election. The opening ceremony for the stock exchange on Wednesday was attended by officials from the central bank, ministry of finance and Daiwa Securities.
Most of the 10 securities firms with conditional licences for trading and underwriting are not yet ready to operate, and when local companies do meet requirements to sell shares, foreign investors will not be allowed to buy them. That means trading on the YSX will at first be a wholly local affair.
The first six public companies to trade shares are: First Myanmar Investment Co., Ltd. (FMI); First Private Bank Ltd; Myanmar Citizens Bank Ltd; Myanmar Thilawa SEZ Holdings Public Ltd; Myanmar Agribusiness Public Corporation Ltd and Golden Land Public Company Ltd. During the opening ceremony Union Minister of Finance U Win Sein said the opening was part of an effort to prepare Myanmar’s financial sector.
“The Yangon Stock Exchange shall be initially operated with the Myanmar citizens-owned business companies and Myanmar investors only. But when the new Myanmar company law comes into effect, foreign companies, joint ventures and foreign investors will have the opportunity to participate in this,” he said.
“In conclusion, the Yangon Stock Exchange is the market that will provide an impetus to the effective development of the market-oriented economy by encouraging and supporting the capital market accessory for the emerging national economy and it’s sustained development,” he added.
It's unclear when the exchange will open up to foreign investors because the nation's companies law is still being drafted.