Myanmar established its first stock exchange in the hopes of fostering the state’s market as it emerges from decades of military rule that was isolationist with only one listed business Friday. The Southeast Asian country is in the midst of a remarkable transition from a graftsoaked backwater into a lively emerging market, with Aung San Suu Kyi far from forming a civilian authorities ’s party days.
The Yangon Stock Exchange formally opened 20 years after it had first been imagined, with cheers from a company elite who are starving for investment and the clang of a bell. Head of Myanmar’s Securities and Exchange Commission, Maung Maung Thein, said it marked a “superb day” for the state, which would leave the miniature club of countries with no functioning stock exchange.
Suu Kyi’s incoming government will replace a transitional management of retired generals who manage five years of economical and political reforms that pumped life back into the resource-rich nation of 51 million individuals. But major hurdles lie in a country that lacks a credit rating and is grappling with widespread poverty and entrenched corruption.
YSX began trading with only an individual company, First Myanmar Investment, which will be among the state’s biggest firms with positions in financial services, property, aviation industry and health sectors. With its sister company Yoma Strategic Holdings recorded in Singapore, and in house system, FMI investors through an with around 6,800 already has expertise of stock trading relations – an investor and open
State-owned Myanmar Economic Bank has a controlling 51 per cent stake with the balance split between Daiwa Institute of Research and Japanese associates the Japan Exchange Group. The bourse is now open only to companies and local investors, although you can find plans to permit foreign participation as time goes on. Officials expect to bring between 30 and 50 companies in another five years to record.
Local investors have met with excitement the bourse. But to groups run by YSX to understand the dangers and benefits of trading, tons of people every week have flocked with little practical expertise of shareholding. Since I believe that the stock market is best for our nation I discovered a lot from novels,” said Soe Myint, 64, a retired official in the Ministry who’d arrived at the YSX expecting to purchase FMI shares.